TECHNOLOGY UPGRADATION OF SMEs IN INDIAN GARMENT SECTOR
P.B. JHALA
Senior Deputy Director
Ahmedabad Textile Industry's Research Association
Ahmedabad-380 015, India.
1.0
INTRODUCTION:
The Indian garment industry plays a key role in the country's economy. It provides
employment to more than 3 million people and constitutes 13% of the foreign
exchange earnings of the country.
Ranking within the top ten world clothing
exporters as shown in Fig.1, the export of ready-made garments from India
amounted to 1504 million pieces valued at US $ 5765 million during the year 2000.
The exports trend in the last decade is shown in Table 1. India has set an export
target of US $ 25 bn for clothing by 2010. Out of the total exports in value terms,
35.8% go to the USA, 33.1% to Europe particularly France, Germany, 4.5% to
Canada and the rest 26.6% to non-quota countries, around the world particularly to
United Arab Emirates, CIS and Japan. The industry has been catering only to lower
end of mainly cotton global market with unit realisation far below the levels of its
competitors abroad.
The industry is primarily consisting of SMEs with traditional technology and
inadequate quality systems. It requires cost-effective technology upgradation in presewing, sewing and post-sewing processes to increase productivity, reduce costs,
adapt quickly to the demand cycle and improve quality.
The industry is in the
process of modernisation to face the global challenges in the export-front and stiff
competition in the local market due to liberalised imports. The government is also
providing support to the industry in various forms in the above pursuit.
(1)
2.0
INDUSTRY PROFILE:
The Indian garment industry is a labour intensive industry with about 58,000 units
spread over the entire sub-continent (Table 2). The industry has two major sectors,
the knitted sector around 10,000 units, the woven sector around 48,000 units. The
average size of unit is small and not exceeding 15 to 20 machines.
The pattern of production of garment industry is weighted in favour of ladies
garments. This is only to be expected since these garments land themselves to all
kinds of fashion and embelishments adding value to the garment. As far as western
style garments are concerned, the pattern of production is estimated as men's wear
25%, ladies wear 60% and children wear 15%. In the case of ethnic wear the
pattern is weighted heavily towards ladies' wear 80% (which includes girls wear) and
20% for mens' wear (which includes boys wear).
The strengths of Indian garment industry are in flexibility in manufacturing, low
labour cost, strong fabric base and ethnic value addition. The weaknesses lie in low
productivity, inconsistent quality, limited efforts of value addition, high degree of
fragmentation, low level of textile/apparel linkage and inadequate support of human
resource.
3.0
TECHNOLOGY STATUS:
The Indian apparel industry exhibits varying levels of technology ranging from
traditional to most modern and this has impacted the overall growth and productivity
of the sector.
The recent national study on technological upgradation needs of Ready-made
Garment (RMG) Industry conducted by Garment Manufacturing Technology (GMT)
Department of National Institute of Fashion Technology (NIFT) has brought out the
technology status of the industry. This has been given in Fig.2. In export sector
only 21% manufacturers use modern technology even by Indian Standards and 70%
(2)
between modern technology by Indian Standards and primitive technology No
company has overall rating of world class technology.
However, 17% owners
perceive of world class plant.
In apparel manufacturing for domestic sector, the situation is not different. The
manufacturers tend to over estimate the technology level of their plant. Only 9%
factories are modern by Indian Standards but 33% manufacturers feel that they have
modern plant by Indian Standards. Sixteen percent owners feel that they have a
world class plant but actually none of them have reached that stage.
This shows that Indian garment industry lags behind in modernisation.
4.0
PRODUCTIVITY AND QUALITY:
The productivity in the Indian garment industry is low when compared with its major
competitors.
The Kurt Salmon Associates (KSA) study on manufacturing cost
comparison has also given productivity rating for apparel manufacturing countries.
India is rated at 50% whereas its neighbours like Sri Lanka and Thailand are rated at
65%. Countries like USA and Germany are rated at 100%. Apparel productivity
research by GMT Department NIFT, also reveals labour productivity improvement
potential in sewing room upto 100% in case of the Indian apparel industry as shown
in Table 3.
Apart from the quality of fabric, the manufacturing processes in the apparel industry
play an important role to achieve the level of quality standards. This is also evident
from one of the studies conducted by the GMT Department at NIFT which is based
on a comparative analysis of industry norms in the industrialized countries and
Indian Apparel industry as shown in Table 4.
(3)
5.0
STRATEGIES FOR TECHNOLOGY UPGRADATION:
Indian apparel manufacturers have been engaged in the process of technology
upgradation in a gradual manner.
The technology upgradation plans for each
establishment need to be drawn by individual companies as a part of overall
organisational strategies. A piecemeal approach can be harmful. Steps involved in
developing technology strategy include knowing the present status, understanding
buyer needs, knowing technological options available, where to start, setting of
standards and review of results.
On the basis of current status of technology level in factories and taking in account
the views expressed by representatives of international buyers, broad guidelines for
the technology mix for different product specialisation and price points have been
developed by GMT Department, NIFT which are given in Table 5 and Table 6.
Machine mix for sewing, pre-sewing and
post-sewing, including software
appications have been recommended for factories aiming at low, medium and high
price segments of the international market.
Buyers may not have specific
technology requirement in all micro areas but there might be minimum expectations
which a plant of today must have to qualify to be a supplier. These equipments are
termed as `order qualifier'. The equipments which shall further improve quality and
technology status of the factory but are not must are termed as `desirable'. Certain
machines are shown as `optional'. These will be added depending on product needs.
It may be important to note before referring to the guidelines on up-gradation for
various product specialisation, that highly specialised automated technological
solutions are available for many functional areas. However, these equipments are
not mentioned in the guidelines as these technologies can only be justified with
economics of scale.
Manufcturers are advised to carry out a detailed payback
analysis before taking decisions on these solutions.
The guidelines for upgradation does not include `washing' area.
Specialised
garment washes have gained popularity in international market. Depending on
(4)
market orientation and product specialisation washing technology will have to be
selected.
Need for washing machines can vary a great deal, hence washing
equipment will have to be added on specific need basis.
6.0
CONCLUSION:
The need for technology upgradation of the garment industry is extremely urgent on
account of quality as well as productivity. Average Indian garment manufacturer
has vast potential to improve quality as well as productivity.
Installations of
sophisticated machines and better skills would enable to gain a competitive edge in
the global trade.
If India has to globalise its garment trade, the industry will have to work the way the
world does.
7.0
ACKNOWLEDGEMENT:
The author is grateful to Dr. M.M. Gharia, Director, ATIRA, for his kind permission to
present this paper at this Interntional Seminar. Thanks are also due to Prof. Rajesh
Bheda and Prof. Pavan Godiawala, NIFT for useful discussions.
The financial
support provided by the APCTT and MOST for presentation of this paper at the
above Seminar is gratefully acknowledged.
8.0
REFERENCES:
1.
Technological Upgradation Needs of Ready Made Garment Industry,
Research Project Report, NIFT, New Delhi, 1999.
2.
National Conference on Management of Technology in Apparel Industry,
NIFT and SIDBI, Chennai, July 1999.
3.
Technology and Strategies of Garment Industry in Changing Scenario,
Rajesh Bheda & S.K. Bhardwaj, 55th All India Textile Conference, Emerging
Trends on Textile Horizen, Mumbai, December 1999.
4.
Have Quota Restrictions Increased Indian Garment Exports, M.K. Panthakl,
Clothesline, April 2001.
(5)
TABLE 1 : EXPORTS OF READY-MADE GARMENT FROM INDIA
Year
Knitted Garments
Woven Garments
Total Exports
mn. pcs
mn. $
mn. pcs
mn. $
mn. pcs
mn. $
1991
249.96
542.77
414.82
1858.87
664.78
2401.64
1992
313.00
751.00
445.50
2132.10
758.50
2883.10
1993
433.20
1052.70
472.00
2413.90
905.20
3466.60
1994
426.00
1123.60
570.00
3298.30
996.00
4421.90
1995
436.70
1155.10
623.50
3318.40
1060.20
4473.50
1996
540.20
1469.70
644.50
3322.40
1184.70
4792.10
1997
632.40
1599.70
667.00
3264.00
1301.40
4863.70
1998
682.00
1627.20
655.70
3421.50
1337.70
5048.70
1999
758.40
1885.20
646.00
3488.00
1404.40
5323.20
2000
827.70
2043.10
677.10
3722.00
1504.80
5765.10
Source: Apparel Export Promotion Council (AEPC).
TABLE 2 : STATUS OF INDIAN GARMENT INDUSTRY
Sector
Number of Units
Number of Installed Machines
Ancillary Machines
Knitted
10,214
1,53,212
-
Investment US $ Million
Total Production US $ Million (Million
Pieces)
214
-
Woven
47,852
7,17,778
Total
1,751
-
Total
58,066
8,70,990
2,87,111
11,58,101
1,965
21,172
(5,528)
Source: Clothing Manufacturers Association of India (CMAI), Data : Dec. 1999.
(6)
TABLE 3 : PRODUCTIVITY RATES IN SHIRTS MANUFACTURING IN INDIA
AND ASIA, 1996
Productivity
Machine Productivity:
Average
Minimum
Maximum
Total Labour Productivity:
Average
Minimum
Maximum
Machine
Productivity
Technology:
Average
Minimum
Maximum
Source:
Asia Including
India
at
India
Rest of Asia
13.17
5.09
25.87
9.99
5.09
22.22
17.47
5.53
25.87
9.71
4.07
16.64
7.88
4.07
15.87
12.18
4.78
16.64
10.50
4.58
11.03
8.07
4.58
17.05
13.84
4.76
21.03
Base
GMT Department NIFT.
TABLE 4 : COMPARATIVE ANALYSIS
IndustrialisedCountry
India
o
2% Seconds
o
10% Seconds
o
5-8% repairs
o
50% + repairs
o
30% excellence rating of financial o
product.
o
Source:
GMT Department NIFT.
(7)
5-10% excellence rating.
High quality related costs (examiners,
Thread trimmers, repair hands).
TABLE 5 : TECHNOLOGY MIX GUIDELINES FOR SHIRT MANUFACTURING
MACHINE TYPE
SOFTWARE APPLICATION:
Fabric Design
Fashion Design
Production planning & scheduling
Pattern making, grading and
marker making
Product Data Management
Labour costing
Cut Plan and Lay Plans
Bundling and Ticketing
FABRIC INSPECTION:
Fabric inspection machine
SPREADING:
Spreading machine
CUTTING:
Straight knife machine
Cloth drill and Notcher
Pin table and laser light
End Cutter
Die Clicker and Band knife
Fusing Machine
LOW PRICE
MEDIUM PRICE
HIGH PRICE
*
*
*
*
*
*
**
*
*
*
**
*
*
*
*
-
*
*
*
*
*
**
**
*
*
**
**
*
**
**
**
*
**
*
**
**
*
**
**
Flat Bed
**
**
**
Continuous
**
**
**
Continuous
**
**
**
**
**
**
*
*
*
**
**
**
**
**
**
**
**
**
**
*
**
*
*
*
**
**
**
**
**
**
**
**
**
**
**
-
*
-
**
*
SEWING:
High speed 1 needle lock stitch
Lock stitch button sewing & button
hole
SNLS Needle feed
Pocket creasing machine
Collar contour trimmer
4 Needle chain stitch (placket
making)
Feed off the arm
Collar & cuff turning and blocking
SNLS with edge cutter
Programmable lock stitch
Top Feed lock stitch
Placket creasing
SNLS with UTT
Double Needle lock stitch with split
needle bar.
Profile stitch with edge cutter
Sequential button hole
(contd….9)
(8)
TABLE 5 : TECHNOLOGY MIX GUIDELINES FOR SHIRT MANUFACTURING (contd.)
MACHINE TYPE
LOW PRICE
MEDIUM PRICE
HIGH PRICE
**
Gun
**
**
*
**
*
**
Work station
**
**
*
*
**
*
**
Work station
**
**
**
*
**
*
FINISHING:
Stain removing machine
Steam iron with vacuum board
Shirt folding table
Body press/Form finisher
Thread trimming machine
Thread suction machine**
Dry cleaning machine (Perc)
*
Desirable
** Order qualifier
Source: GMT Department, NIFT.
(9)
TABLE 6 : TECHNOLOGY MIX GUIDELINES FOR FASHION GARMENT
MANUFACTURING
MACHINE TYPE
SOFTWARE APPLICATION:
Fabric Design
Fashion Design
Production planning & scheduling
Pattern making, grading and
marker making
Product Data Management
Labour costing
Cut Plan and Lay Plans
Bundling and Ticketing
FABRIC INSPECTION:
Fabric inspection machine
SPREADING:
Spreading machine
CUTTING:
Straight knife machine
Cloth drill and Notcher
End cutter
Band knife and Die clicker
Fusing Machine
Strip cutting machine
SEWING:
High speed 1 needle lock stitch
Blind stitch
LS with top and bottom feed
Multy needle chain stitch
Multi head embroidery (optional)
Five thread safety stitch with top
feed
Three thread over lock
Bar tack
Lock stitch with UTT and Auto
back tack
Four needle waist band elastic
machine
Zig-Zag Lock Stitch
Lock stitch with edge cutter
Five thread safety stitch with top
and bottom feed
LOW PRICE
MEDIUM PRICE
HIGH PRICE
*
*
*
*
**
**
*
**
**
**
**
**
*
*
-
**
**
*
-
**
**
**
**
*
**
**
*
*
**
**
*
*
*
**
Flat Bed
**
**
*
*
**
**
Continuous
**
**
*
*
**
**
Continuous
**
**
*
*
**
**
*
**
**
*
**
**
**
**
**
**
**
**
**
*
**
**
**
**
**
**
**
**
**
**
**
-
**
**
**
**
**
**
(contd….11)
(10)
TABLE 6 : TECHNOLOGY MIX GUIDELINES FOR FASHION GARMENT
MANUFACTURING (contd.)
MACHINE TYPE
FINISHING:
Stain removing machine
Steam iron with vacuum/blowing
board (flat & utility)
Form finisher/blowing
Thread trimming machine
Thread suction machine**
Dry cleaning machine (Perc)
*
LOW PRICE
MEDIUM PRICE
HIGH PRICE
**
Gun
**
**
Work station
**
**
Work station
**
*
*
**
*
*
*
**
**
**
*
**
**
Desirable
** Order qualifier
Source: GMT Department, NIFT.
…..
(11)
GARMENTPAPER/PBJ/29.8.2001