Kitex Garments is pinning hopes on the shift of multinational garment retail brands from China which could offer an immense opportunity for the Indian garment sector to cash in.
Sabu M.Jacob, Managing Director, Kitex Garment told businessline that 80 per cent of the US garment buyers have already shifted from China and this will be 100 per cent by 2025. The emerging situation augurs well for the Indian garment sector, but the need of the hour is to offer more productivity to meet overseas buyers’ requirements.
Vietnam, Cambodia, African countries, Bangladesh and India can have a competitive advantage to China. However, the focus shift of Vietnam to automobile and electronic value addition and the political instability in African countries is a risk factor for retail brands to invest there. Given such a scenario, he said India and Bangladesh is the only option for the companies to focus on.
Kitex Garments upcoming manufacturing facility in Telangana can offer a viable alternative. The first phase of the ₹3500 crore facilities will be ready by the year end and the second phase by December next year. This will enable the company to increase its production capacity to three times from 7 lakh pieces per day to 29 lakhs pieces per day, he said.
On the unrest in Bangladesh benefiting the Indian garment industry, he said it “will be a bonus boost” to India as buyers would look for options in meeting their production requirements. Some buyers have reacted that they felt insecure and psychologically upset on the chaos and taking over of the administration by the Army. They are thinking of shifting to a safe country with political stability.
In the present circumstances, he said India with a booming economy, can offer an alternate solution, he said adding that almost all the major brands in the US, Europe are depending Bangladesh to outsource their work in large numbers.
The recessionary trends felt across the globe have not affected the garment industry, while the demand in Indian garment industry is remaining flat, he said.