Business & Policy | News & Insights

Ludhiana Hosiery Manufacturers are in Worry Due to Lowering Demand and Sales

Published: December 6, 2022

Hosiery and wool items from Ludhiana are well-known all over the world. The goods produced here are exported, going, among other places, to Uttar Pradesh (UP), Jammu and Kashmir, Rajasthan, Madhya Pradesh, and Bihar.

Manufacturers typically wait for orders during the winter season, but this year they are concerned due to ‘poor sentiment’ among consumers as well as fierce competition from the cut-and-sew business that is expanding in UP and Bihar. In a cut-and-sew industry, labourers purchase the fabric, then cost-effectively cut and sew it for the market.

“The season has never been this awful for the woollen business,” according to Darshan Dawar, chairman of the Ludhiana Woolen Manufacturers’ Association. 

“We are facing tough competition at the hands of the cut-and-sew industry in UP and Bihar. The labour engaged in the industry are Muslim families, with 8-10 persons in each family. They get the cloth, makes jackets, sweatshirts, etc and sells the products on minimal margins. Even though the margins are not high, they are able to sustain as they produce huge volumes,” Dawar said.

According to Sudershan Jain, general director of the clothing company Oner, “sales were down by around 20% this season as a result of consumers’ negative reactions to Covid. Due to high winters and the wedding season, he said, the manufacturers are hopeful that by January and February, the sales will take up. Productions and sales are now low.”

One of the manufacturers claimed that their monthly production, which had decreased to 3.5 lakh items, had once been around 6 lakhs. “Everything’s been put on hold. There are various factors contributing to this downturn, such as the general market crisis, competition from Bangladeshi and Chinese markets, the postponed winter season, etc.,” he stated.

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