Apparel units go lean to beat order slump

KOLKATA: European apparel importers have reduced the order-to-delivery time from 12 -15 weeks to 7-8 weeks in order to avoid creation of inventory.

This has forced Indian apparel units to opt for 'lean manufacturing mechanism' pioneered by automobile giant Toyota. They are getting rid off migrant labourers and are using local workers to deliver orders at the shortest possible time. These initiatives have enabled textiles units to increase efficiency at the shop level from 45% to 60% and maintain margins in tough times.

'Lean' is a production practice that considers expenditure of resources for any goal other than the creation of value for the end-customer to be wasteful, and thus a target for elimination. Gautam Nair, owner of Matrix Clothing, said: "We have already opted for this type of production, which has improved our efficiency and eliminated wastage."

India's apparel exports to EU declined 48.1% in April and May to $0.67 billion compared to $1.3 billion in the corresponding period last financial year. The EU accounts for about 49% of India's total apparel exports.

Interestingly, T-shirts, one of the most popular exporting items, is losing ground in Europe and US. "In fact, we will have a brainstorming session in Bangalore in early August to find out the reasons for this decline and to come up with possible measures," said Vijay Mathur, additional secretary general, Apparel Export Promotion Council. R Gopalakrishnan, chairman of Tirupur-based Royal Classic Mills, added that migrant workers from Bihar, Jharkhand and western UP come to apparel units for work.