→Collectively Defying The Tough Times
→Latest Technology Adopted To Attain Excellence In Exports
→New Apparel Parks To Create Jobs And Organise Sector
→GEAR Stands United In Difficult Times, Highlights Strategies To Move Ahead
With more than 400
units and an annual
turnover of around Rs
5000 cr (including
both export and domestic garment
manufacturing), Jaipur has come a long
way by any definition. Jaipur, the capital
of Rajasthan, founded by Maharaja
Sawai Jai Singh II on November 18,
1727 is no longer a cluster for getting
printing and dyeing work; in fact, it has
already attained the status of an
international manufacturing cluster
supplying to hundreds of brands, both
international and national.
There is a huge demand for Indian textiles in the foreign market and Jaipur has been serving the need of readymade garments like a 'Boss' from a long time now. Availability of raw materials is abundant and skilled workmanship has contributed the most to the success of this industry. This has put Jaipur in the limelight and investors are seeing it as a lucrative option for investment.
Over the years, international buyers like Zara, Mango, Macy’s, Carrefour, New Look, Miss Selfridges and K-mart, among others, have started sourcing from Jaipur. While Japan still remains the most important buyer for most of the players, many new buyers have from places like Australia, New Zealand, Russia and the Middle East markets have started approaching manufacturers in Jaipur, tacitly recognising their strengths in giving the best and innovative product range, especially hand work. Majorly known as a producer of printed, dyed fabric and tie & dye for fashion garment industry and Rajasthani prints of Bagru and Sanganer, manufacturers from Jaipur have achieved international recognition.
Jaipur has well-developed social,
physical and industrial infrastructure as
well as good virtual connectivity. A
majority of these factories are located in
designated Industrial Areas and Export
Promotional Industrial Parks (EPIP)
resulting in professional and systematic
working. The State Government has a
very proactive approach towards
industrial, infrastructure and overall
development. New units are coming up
in and around Jaipur. Good roads and highways connecting with Jaipur along
with proximity to an airport have given
a good boost to this cluster’s growth.
Buyers find it an attractive and
entertaining location, where they can
source while browsing through some of
the best tourist options. The
international airport of Jaipur is already
handling a lot of air traffic from places
like Singapore, UK, Malaysia, Thailand
Jaipur has a population of approximately 2.3 million. It is well connected by road and rail to Delhi International airport for air shipments and Mumbai port for sea shipments. For movement of cargo, there are Inland Container Depots at Jaipur, Jodhpur, Bhiwadi, Kota and Bhilwara. Concor (Container Corporation of India Ltd.), which already operates three of these terminals, is coming up with another one near Udaipur.
Companies located in and around
Jaipur have, over the years, taken
technology very seriously and have
invested in adopting advanced and
highly sophisticated ‘cut to pack’
facilities, with latest machinery from
reputed companies like Juki, Brother,
Pegasus, Kansai, Hashima, Barudan,
SWF, Gerber, Optitex, etc. The Jaipur-based Garment
Exporters Association of Rajasthan
(GEAR) is a regular visitor at national
and international machinery exhibitions
and is always on the lookout for latest
advancements so that efficiency,productivity and quality in every single
piece can be obtained. As compared to
the last few years, the dependence on
job work and outsourcing for activities
like dyeing, embroidery, printing and
finishing is reducing as exporters want
to accommodate most of the facilities inhouse
to exercise proper control on
quality, delivery and efficiency.
Recently a lot of demand has also been seen for latest designs in embroidery and thus many manufacturers are working towards offering superior design capabilities through the use of embroidery, hand embellishment by bead and sequins as well as lace and patch work. In fact, many players have gone ahead and have installed multi-head embroidery machines at their units, which was earlier available mainly through Job work. The number of installations in the region has increased substantially and machinery suppliers anticipate good business from the cluster in times to come. Apart from regular sewing machines, automatic machinery for finishing, button marking and the latest digital printing machines are also seeing demand for Jaipur and nearby areas.
Mainly known for women’s
wear, Jaipur is fast evolving as
hub for kids’ and ladies’
garments. Manufacturers are
doing diverse products ranging
from ladies’ blouses, skirts, tops,
gowns, tunics, jackets in both
woven and knitted fabrics.
Experimentation with a variety of
fabrics is also seen and garments made of cotton, blends, viscose,
voiles, crepes, georgette, chiffons,
velvet, jacquard, dobby, linens,
cotton jersey, viscose jersey,
mélange, etc., are sourced.
Although manufacturing is being
done in almost all areas of Jaipur,
Sitapura area is one of the main
With increasing awareness
about compliance and safety in
manufacturing, a number of units
are now working on setting up
fully compliant units. Companies
are investing for the future and are working on getting
certification likes WRAP, BSCI,
Sedex, ISO 9001:2008, etc.,
which are defined requirements
to associate with international
Cost effectiveness has been
one of the biggest advantages
since the city is not a metro.
Manufacturers here are
considered to be more cost
effective in production due to the
lower cost of resources which
ultimately results in lower
overheads and better prices for
customers. This is a major reason
why almost all renowned retail
chains from India like Lifestyle,
Reliance Trends, Pantaloons,Westside and several others are
sourcing a major portion of
merchandise from Jaipur. Most buyers who source from
Jaipur feel that the best part
about Jaipur is that the exporters
here are flexible and attend even
if they have small order
quantities. Companies are doing
small order quantities per style to
meet the demand of boutique and
high value customers.
The garment manufacturing
industry has been flourishing in
the state for more than 35 years
and therefore a trained pool of
manpower is now available.
Youngsters in the area are also
inclined towards becoming part of
the industry. The state has 1,050 colleges,
including 80 engineering colleges,
58 polytechnic institutes and 846
industrial training institutes
(ITIs). Jaipur is ranked 3rd in
India in ‘Ease of Doing Business’
in a World Bank Report on India.
As far as labour is concerned,
labourers are readily available
from nearby villages. The state also has adequate power. In the
last few years a lot of labour has
shifted to major towns like Delhi,
Noida, Ahmedabad in a search for
better facilities and pay. On an
average, a worker easily gets
around Rs 15,000 pm for stitching
work for eight hours a day and a
cutting master can earn upto Rs
20,000 pm in Jaipur. So the
notion that Jaipur is cheap and
non-efficient is just a phrase now.
With the installation of latest
technologies, compliant units,
colleges and exporters working on
design and quality, the antiquated
thoughts about Jaipur have
undergone a complete change.
• Delhi-Mumbai Industrial Corridor (DMIC) is a mega infrastructure
project of US$ 90 billion with financial & technical aid
from Japan, covering an overall length of 1483 Km between the
political capital and the business capital of India, i.e. Delhi and
Mumbai. 39% of the project is based in Rajasthan, providing great
connectivity to the state.
• Apparel Park in Jaipur to be on stream by March 2018, covering an area of 2000 sq m. An Apparel park in RIICO Industrial Area, Mahal Road, Jagatpura, under Mahal Yojana, Jagatpura, is in the pipeline in which only apparel/ garment units will be set up. 1-2 kms away from Akshay Patra, Jagatpura, Malviya Nagar, it is expected that the park will be operational by March 2018 and will house more than 200 garment units.
• 6 MW model solar power plant in Neemrana commissioned. India’s first 1 MW smart micro grid demonstration project (off-grid) that uses Japanese technology to integrate solar power with diesel generators to provide reliable green energy supply for industrial use, along with a 5MW model solar power plant, was inaugurated in Neemrana. The Neemrana Solar Power Project has been built by the Delhi Mumbai Industrial Corridor Development Corporation (DMICDC), in partnership with the Government of Japan.
The market is stable, there has not been much of up and down for exports. The domestic market is growing well and we all are planning to increase production for the same. We are setting up a new factory. The state government is taking good initiatives to help us and promote the industry but from policy to reality, the road is long. We are hopeful that those policies made in our favour would start working in times to come. I don’t cater to Japan at all and I feel most of us are being stereotyped. It is not like we only export to Japan and U.A.E., we have business relationship worldwide, be it through agents or direct tie up.
Market is stable but extremely price sensitive, especially after the implementation of GST, and we are facing huge challenges. To offer the same price as earlier to our client has become almost impossible due to the increase in production cost. As far as the market is concerned, there is a demand from both export and domestic markets and we are expecting good growth in the coming future.
At present, Jaipur is the most favourable destination for manufacturing on a comparative basis, as we don’t face labour issues. Also, the state government is helping us in promoting textile and garment manufacturing in the state. Manufacturing is cheap in Jaipur as compared to other cities. We have been manufacturing garments from a long time now and have always served the Japanese market. At the moment, the export market is suffering all over India and we are no exception; Regrettably, unfavourable taxation is hurting our competence and as a result we are losing business to Bangladesh and Vietnam. We fear that once the 7-8% Drawback input is removed by the government, business will suffer a lot. The domestic market on the other hand is growing better day by day, Reliance sources almost 30-40 lakh readymade garment pieces from our city and we are happy we can provide them the quality and quantity they demand. Most of the manufacturers have resorted to setting up new factories as part of their expansion policy and to increase production.
We are blessed with skilled labour, so even if labour wages increase, we will be happy to pay those who deserve it. The real problem is what most of us don’t talk about and discuss. It is not that the workforce doesn’t want to work and there is a scarcity of labour; in fact, it is the very poor transportation situation that compels them to quit their job. For example, if my factory is in Sitapura Phase 4, public transport drop off is available till Sitapura bus depot. It is a 2-3 km walk from there to our factory. And Jaipur can be hot! Hence they give up. The Garment Exporters Association of Rajasthan (GEAR) has tried to talk to the state government about this and we also believe if not the government, then the association will do something about it, like giving housing to these workers so that they can be peaceful and work comfortably. Otherwise, the market and demand is great and we expect good growth post the upcoming festive season.
There has been a lot of negative sentiment working behind business since the last few months, I won’t say business is running at a loss, but it is definitely in trouble. After the implementation of GST, buyers have refused to pay 18% GST. Shipments have got stuck but I am sure the market will slowly improve. Surprisingly, the domestic market is doing so well that many have diverged into the domestic market completely. Our association is very dear to us as we feel we have someone to listen to us and we have a platform to voice our grievances.
When GST came into being, we started facing problems as any new regulation or law would create chaos for a while; things are, however, settling down now. Though my work is completely into export, I see the domestic market is growing a great deal. True that we have maximum business relationship with the US, Japan and UAE, but a lot of people are doing business with European buyers also. We mostly cater to the wholesalers and in the future, we see that brands will tie up with us too. GEAR is extremely helpful and we are happy to have such a compassionate association that stands by us through thick and thin.
Association of Rajasthan
(GEAR) was formed in
1978 with the help of
fledgling Founder Members. The main
aim was to promote export of Garments
from Rajasthan since no such apex
organisation existed at that time. Now
there are around 270 Members, out of
which 60% are life members. The
members are exporting Readymade
Garment all over the world. Over the
last 26 years, the Association has been
assiduously promoting exports by
organising buyers-seller meets, trade
exhibitions, Garment Fairs, etc., in its ceaseless endeavour to promote and
expose Indian Garments to
International markets for greater
visibility and choice of products. There has been a gradual but forceful
shift in concept and ideology over the
past four decades. The current team
headed by Ravi Poddar, MD Cheer
Sagar, is more aggressive, dynamic and
proactive, imbued with a common
objective of making Jaipur an ideal
destination for manufacturing
garments. There is a lot of focus on
transparency among fellow members on
various issues like how to increase
exports, tackling day to day problems,
sourcing raw material and machines,
adopting new technologies, holding
regular seminars and discussion forums
to identify and resolve problems,
working on new markets, improving
products and efficiency and much more.
The closely knit group has openly
realised that rather than resorting to
internecine squabbling and competing
with each other, it is far better to unite
and fight for common causes and long
Their website is always updated, there are groups being formed amongst the members to help each other in challenging situations while also identifying fairs and exhibitions that can give a boost to their business.
Speaking exclusively to PERFECT SOURCING, Ravi Poddar, President, GEAR said, "Today, the Jaipur market is not export oriented per se, but serves as a major apparel manufacturing hub to both the export and domestic market. As an association, we have been working on areas that can accelerate growth and help us sail through the tough times being faced by the industry post demonetisation and GST.” He confirmed that Jaipur does business of approximately Rs 5000 cr every year (both exports and domestic) and most of the exporters are now into the domestic side of business also. “The industry has survived the recent tough times by falling back on the domestic market and now most companies are dependent on it with a share of 70: 30 in domestic versus export quantity,"shared Poddar. He also revealed that big chains like Reliance Retail are already sourcing a lot and plan to source almost 1cr garments from Jaipur every year.
He feels that Jaipur is no longer an outdated hub because it has some of the best factories with good turnover, product mix and buyers profile. Companies like H&M and Zara are also looking at Jaipur for sourcing and are doing sampling with many exporters. "We have the best of factories. We will shortly have a new apparel park which will house all garment units and is expected to be operational by March 2018. Buyers from countries like Brazil, Russia, Argentina and South America have shown interest which will give a major push to Jaipur in the coming times," he articulated.
Poddar however raised concern about increasing challenges like GST, low duty drawback rates and shifting of labour to other manufacturing destinations as this would cause trouble for existing units in Jaipur. "I have written to our CM that we should also think of some incentives or schemes like Jharkhand where the Govt is attracting investments by giving many advantages to its natives and people interested in investment," said Poddar.
Poddar feels that as exporters, they have to now market themselves in a more aggressive manner, travel a lot, meet buyers and understand them and their concerns and squeeze wherever they can so that profitability, which is being affected, can be worked upon. To offer more benefits to its members, GEAR has also tied up with Air India wherein they have agreed that members of association will use Air India’s service to travel. "We are now trying to work on discounted prices for air cargo from airlines so that the industry gets some benefit," said Aseem Singla, from Gear who also runs export house by the name Fashion Images Overseas. He also informed that as an association they are leaving no stone untouched and right from collective decisions regarding buying of machinery, paper work, GST, and sharing each other’s concern, the association is doing all. He shared, “Recently LOT was required as a paper and no one had any information on the same. So we went to the Ministry and obtained all required information. Then, as a service, we offered all our members the information we had collected about LOT and all help in getting through the paperwork and formalities related to it without harassment or wastage of time. This gesture was highly appreciated by other associations as well."
GEAR has been doing several seminars and discussion forums to educate its members about various topics of concern. “We aim at increasing transparency and cooperation,” added Poddar. The Gear team is now inviting young entrepreneurs to join them and take the business to newer heights with their knowledge and innovative ideas. The association recently had its Annual General Meeting, where they shared their concerns and future plans for the benefit of the industry at large.
• CHEER SAGAR : Cheer Sagar an export house of ladies Readymade
Garment since 1991,has recently won the "STATE AWARD FOR EXPORT
EXCELLENCE". In past the company has also won "Special Recognition
award" by the president in 1995-96.With Rs.4429.65 Lakh rupees export in
the year 2014-15 this export house has set an example.
• Ahuja Overseas, a MSME unit run by Archanda Ahuja and her family that got into business in the year 1991 has been exporting to Poland, Turkey, Germany, Canada, South Arabia, Brazil, etc. The company has won State Award for Export Excellence in the woman entrepreneur category having exported readymade garments worth Rs.2090.00 lakhs in the year 2012-13.
• Traditional Gallery Pvt Ltd run by Dinesh Goyal won State Award for Export Excellence in for having exported readymade garment worth RS.2405.35 lakhs in the year 2012-13.
• Lodha Impex: LODHA IMPEX has been exporting readymade garments since 1993. The unit has track record of exporting largest quantity of cotton ladies garments of the Japanese market.
"Today Jaipur market is not export oriented but it caters as a major apparel manufacturing hub to both exports and domestic market. As an association we have been working on areas that can accelerate growth and help us sail through the tough times being faced by the industry post demonitisation and GST."
"To offer more benefits to its members, GEAR has also tied up with Air India wherein they have agreed that members of association will use Air India’s service to travel. “We are now trying to work on discounted prices for air cargo from airlines so that the industry gets some benefit"