Textile cos step up hiring as business picks up

NEW DELHI: Indian textile companies — one of the worst hit by the global economic slowdown two years ago as export demand shrunk, leading to major job losses — have started hiring again after orders picked up from key markets like the US and EU. Being one of the top employing sectors in the country, this is expected to translate into more consumption demand in the economy.

A number of top exporters, including Alok Industries, Gokaldas Exports, Orient Craft and Vardhaman Group, are ramping up their workforce to cater to rising demand.

For instance, Orient Craft — one of the largest exporters of readymade garments to international brands, including Gap, Tommy Hilfiger and Marks and Spencer — has already hired about 1,300 people at its new production plant at Bhiwadi (Rajasthan) and expects to add about 2,700 more by the end of October.

The new plant, which is slated to start production by July, is expected to employ about 20,000 people over the next four years. The company had laid off about 100 people during 2008-09 as export demand dried.

Alok Industries is also looking to hire about 1,200 people by the year-end. “We are hiring about 100 people every month across level for existing units. In addition, we are also charting out plans to set up a new plant that will require additional workforce,” Dilip Jiwrajka, director, Alok Industries said.

Companies have started hiring in response to recovering export demand. Apparel exports grew 5% in January 2010 after shrinking 6% in the first nine months of the fiscal, according to the Apparel Exports Promotion Council (AEPC).
Total textile exports from India had dropped 1.7% to $21.75 billion for the year-ended March 2009 over the year-ago period due to slump in demand from the key markets.Currently, the textile industry employs around 35 million people, with major clusters located at Tripur, Delhi and Jaipur, making it the single- largest employer in India. With rising demand, the headcount in the industry is expected to grow about 1% in next one year, said Hari Kapoor, executive committee member of AEPC.

Some like integrated textile manufacturer Vardhaman Group have started hiring, but are waiting for the market to maintain consistent growth before aggressively increasing headcount. “If the market continues to grow at a comfortable level, we would look at increasing our workforce,” SP Oswal, chairman, Vardhaman group, said. The group has hired close to 1,000 people at various levels since November as it has added production capacity.