Report

Women’s Garments in India
(Sample)

Executive Summary

India is the sixth-largest apparel exporting country in the world, with exports valued at US$5.5 billion in 2004, a year-on-year growth of 12 percent in value terms. Women's garments comprise the majority of apparel exports from the country, accounting for an estimated 45 percent of shipments. Exports in the category will soar in the next 12 months as a result of the removal of quota restrictions.
Suppliers have been preparing for the anticipated demand growth by expanding their capacity and at the same time enhancing quality and reducing delivery times to compete in the 'survival of the fittest' scenario of the quota-free regime.
The following are some of the key trends we see in India's women's garment export industry:
• The country will become the next most-attractive apparel sourcing option after China, leaving behind other garment exporting countries in Asia.
• Production capacity will increase dramatically as the majority of makers plan to set up new factories or expand their current ones in the next 12 months.
• Intense internal and external competition will force makers to modernize and automate their factories to improve quality, lower production costs and reduce delivery times. Many makers have already planned to upgrade their facilities with computerized sewing machines, automatic fabric laying and cutting machines, and CAD software.
• Increased competition might also result in a shakeout in the industry, as small companies with limited capital might not be able to survive price pressures, and as new entrants join the line.
• Export prices will decrease by up to 10 percent as suppliers undercut each other to secure more orders. In addition, competition from China will force makers to lower quotes.
• Women's tops and dresses will remain the main export product categories, but output and exports of pants and trousers will increase substantially.
Women's tops, including blouses and T-shirts, dresses, skirts, trousers and sleepwear are the main categories of women's garments exported from India. Tops comprise an estimated 50 percent of output and exports, followed by dresses and skirts with combined exports of approximately 30 percent.
Pants currently comprise only about five percent of exports, while sleepwear accounts for almost 10 percent. This report covers all these main women's garments produced by India makers.
The Products & Prices section explains the differences between low-end, midrange and high-end garments in each product category and includes their respective price ranges. The Manufacturing module discusses the production processes followed by India makers, highlighting the steps they are taking to automate garment manufacture. The R&D/design module elaborates on makers' design focuses, while the Fabrics & Accessories section provides insight into suppliers' raw material sourcing strategies.
Among the featured suppliers in this report is South India-based Eastman Exports, the largest exporter of knitted garments in the country, with total sales amounting to US$90 million in financial year 2003-04. Also visited for the report is North India-based Shahi, which is among the top five garment exporters in India.

Industry Overview
India is poised to be the next big winner after China now that the multifiber agreement, which dictated terms in garment trade for the past 30 years, has finally expired. Although China will gain the major share in global garment exports, India is well on its way to becoming the second-largest supplier to the United States and the European Union in the post quota regime, much to the detriment of other garment-exporting countries in Asia.
India is currently the sixth-largest apparel exporting country in the world, with estimated exports for 2004 amounting to US$5.5 billion, an increase of about 12 percent over 2003. The industry has been growing at an average rate of 10 percent for the past three years. But with the quota system now terminated, the export growth rate is projected to double in 2005. All apparel exports are expected to reach US$6.6 billion by the end of the year.
Suppliers in India are especially upbeat about exports in the quota-free era, mainly because more than 95 percent of garments shipped from the country go to former quota-restricted markets of the US, EU and Canada. In 2004, the three regions combined absorbed US$5.2 billion worth of India-made garments—almost 95 percent of total exports in the product line. In 2003 too, these main export destinations dominated India's garment trade, accounting for US$4.6 billion worth of apparel exports, out of a total of US$4.8 billion.
According to a WTO study, India's share of the US apparel market is forecast to increase from the current 4 percent to 15 percent, and from 6 percent to 9 percent of the EU garment market, in the next couple of years.
Women's garments comprise a major portion of apparel exports from the country, accounting for an estimated 45 percent of shipments. The product category is also expected to register the highest export growth rate in 2005.
One of India's main advantages as a source for women's garments lies in its large manufacturing base of yarns and textiles. The country is the third-largest producer of raw cotton after China and the US, and among the world's largest producers of cotton and manmade yarns and fabrics. This, coupled with the availability of relatively low-cost skilled labor and qualified designers, reinforces India's position as a strong competitor in the quota-free era.
A number of makers also expect a partial shift of US buyers from China to India in a bid to reduce the risk of sourcing entirely out of one country. The demand growth, however, will result in intense competition to the extent that suppliers in India will have to improve quality, drop prices, add more value to their garments and shorten delivery lead times in order to compete with domestic as well as international counterparts.
While China is the most formidable force in the world's garment industry, India's niche specialty in hand-embroidered women's garments gives it an edge over China. Nonetheless, China is no doubt India's biggest competitor in other garment categories that do not have much scope in terms of embellishments, such as knits, sleepwear and business suits.
Internal competition might in the long-run result in slight consolidation in the industry, as suppliers unable to bear price and quality pressures will close down. Makers who are able to offset price reductions with considerable increases in export volume and a reduction in overall production cost, will be winners in the post quota apparel battle.

Supplier Profile
Allied Export Industries
New Delhi-based Allied Export has its own design studios under the name of Allied Export International in Paris and Holland. The studios develop buyers' designs and are also engaged in the creation of new designs, using computer-aided design techniques.
OEM orders take up 100 percent of production. About 48 percent of women's garments are exported to the United States and 40 percent to Europe. The company exports the remaining 12 percent of garments to Latin American countries like Mexico, Brazil and Chile.
Products
Main products in women's garments are women's tops, accounting for 55 percent of export volume, and dresses, at 20 percent.
Price range of knitted tops is from US$1.90 to US$6 per piece, while woven tops go for US$3.10 to US$8. Skirts are available for US$3.75 to US$10, and dresses from US$5 to US$18. The company makes sleepwear and loungewear in the price range of US$4 to US$14.
Design is focused on developing street fashion, casual wear, holiday wear and sports wear.
Allied Export sources cotton fabric or yarn-dyed cotton fabric from Erode, Coimbatore and Chennai, Tamil Nadu state; polyester fabric from Surat, Gujarat state; and fabric-printing services from Ahmedabad (Gujarat state), Jodhpur (Rajasthan state) and Delhi. It also sources polyester and polyester blended fabrics from South Korea, China, Indonesia and Taiwan.
Fabrics undergo 100 percent checking, with laboratories such as Intertek Testing Services (ITS) and Société Générale de Surveillance (SGS), if buyers specify.
The company has also applied for Six Sigma certification, a methodology intended to reduce process variation to within a limit, which will result in 3.4 or fewer defects per million samples.
Manufacturing
The company has two factories in NOIDA in Uttar Pradesh, which work on assembly line basis, and the two factories in Delhi work on make through basis. The factories in NOIDA have social, quality and environmental compliance as per US and European norms.
The company has 22 production lines in all. The two factories in NOIDA have a total of 15 production lines, each consisting of 36 operators.
The company has 30 cutting machines from Eastman Machine Company and Patti; around 1,000 sewing machines, which include single-needle and double-needle sewing machines; and over-lock machines from Juki Corp and Brother Industries of Japan. It also has computerized button-hole and button-attachment machines from Brother, as well as a belt-attaching machine.
The company has built a high level of flexibility into its manufacturing facility. According to the company, its facilities can be switched to produce another style of garment or use a different variety of fabric in 30 minutes.

Product gallery
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|Ahuja Overseas | |Ammen Mills |
|Model: 11701 | |Model: 1270 |
|Minimum order: 500 pieces | |Minimum order: 500 pieces |
|Packaging type: As per buyers' specifications | |Packaging type: As per buyers' specifications |
|Delivery time: 60 days | |Delivery time: 60 days |
|Indicated price: US$3.60 | |Indicated price: US$2.30 |
|Description: Long sleeves; V-neck; V-cut waist; discharge | |Description: Basic round neck |
|print all over; sequins work; 100% cotton | |T-shirt; print all over; 100% cotton rib |
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|Ahuja Overseas | |Apex Overseas |
|Model: 10614 | |Model: LA06 |
|Minimum order: 500 pieces | |Minimum order: 1,000 pieces |
|Packaging type: As per buyers' specifications | |Packaging type: Polybag and carton |
|Delivery time: 60 days | |Delivery time: 7 days |
|Indicated price: US$2.60 | |Indicated price: US$2.75 |
|Description: Sleeveless; discharge print all over; sequins | |Description: Green 60gm georgette; all colors available; |
|work; 100% cotton | |azo-free dyes used; all US sizes available |
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|Allied Export | |B.L. International |
|Model: LB 4968 | |Model: BLN-15392 |
|Minimum order: 2,400 pieces | |Minimum order: 2,000 pieces per style per color |
|Packaging type: As per buyers' specifications | |Packaging type: Polybag |
|Delivery time: 75 days | |Delivery time: 60 days |
|Indicated price: US$3.50 | |Indicated price: US$4.90 |
|Description: Sleeveless; printed polyester georgette fabric; | |Description: Short top below the waist; short sleeves; round |
|frill at neck and on armholes; small knot on one side of | |neck; glass beads sewn on the neckline; poly-georgette; |
|bottom edge | |chiffon sleeves |
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Report 8.6 of 10 on the basis of 3671 Review.