Discussion point is How to Compete with Export / Domestic Market in Present Challenges (COVID-19).
Webinar discussion with Mr. Premal Udani and Mr. Rahul Mehta from CMAI.
GFRRC Chairman Mr. Giridhar Mundra, Welcomed webinar participants and said “to deal with the current situation, the chamber has decided to make a positive use of time and use different types of programs to conduct various webinars. With the same view we will be conducting this webinar regarding the garment industry. As some of us may know that the fabric manufacturing in Surat is over 4 Crores of meter per day, from which around 65% is used by the garment industry. Garment industries in Surat are quite few, so most of the fabrics are exported from Surat. Certificate of Origin, which is one of the biggest concerns of chamber of commerce and have made immense efforts towards developing the garment industries in Surat. We are very honoured to announce that impact and the outcome of these programs came out with flying colours. A garment market has been started, wherein about 175 manufacturers have started sales under one roof. These manufacturers make use of the fabrics that are manufactured in Surat.
During the entire lockdown situation both the domestic as well as export industry is struggling. According to a survey, it is said that after the lockdown is over India will have the highest growth rate in its economy although it was down by 2%. It is important that people participate in exports as well as in the domestic market, because it is better to keep a foot in both the fields and take advantage of the market situation as and when things improve or change.
Q. In the current scenario will the exhibitions of CMAI happen?
A. Keeping in mind the current situation in mind, we have decided that we will continue with the fair because it is towards the mid of July. We are hoping that the situation will come under control by then, but of course we will continue to review as we come closer to the day.
Q. How to receive the list of AEPC and CMAI member list?
A. We generally do not share the list but if you are willing to distribute promotional material to our members, so CMAI offers facility without profits but charge the cost. This is only for those who are members of CMAI.
Q. Bangladesh export of garment to Europe, UK have been badly affected by corona situation, how will it be affected to India if their dump will come to India?
A. Bangladesh is making immense efforts to contact the buyers and request them to not cancel the orders. The delivery may get delayed but if the orders get cancelled, it will be a huge loss for Bangladesh as well as India. if they dumps Indian market will flood with Bangladesh goods, it will have to be sold at 50%-70% discount.
Q. How do we look at the export both in ready garments and fabrics, Now World will stop buying from China?
A. Today people are little upset and against China, wanting to find a new market, but at the end of the day it always comes back to China. This is because their economies of scale, at which price they can make the products, and their innovations cannot be done anywhere else. We are making efforts to promote make in India projects to be successful. If we are willing to make this successful we will have to stop exporting our raw materials, our fabrics or yarns are exported to other countries and there it competes with our garment industries.
Q. What will be the prices of raw material after the lockdown?
A. Post lockdown there can be 2 things that can happen, conventionally the prices should go down and the raw materials may become really cheap. Fear is that the industry is going to get affected so bad due to lockdown, industries may not have liquidity to buy yarns, though may be yarn selling at cheap rates.
Q. Does China has a better pulse of understanding the global garment demand, do we have to improve our market intelligence probabilities?
A. 100% correct, China is five steps ahead of everybody, in today’s scenario, they visit different countries and research the country’ s requirement and then they plan the garments for the country. Because it has a central government, their trade missions that are there everywhere are very active in gathering the intelligence.
Q. Do you think compliance of local unit should be made mandatory and cost for compliance should be subsidized by government?
A. It can’t be made mandatory except certain basic requirement such as child labour and stuff like that. Because you have to understand the compliance as there are many issues in which the government may not interfere. But I believe that today only the international buyers can demand for the compliance factories.
Q. Any opportunities for small garment or small manufacturing for material for international market
A. 80% apparel industry is medium and small scale industry. There are many opportunities for small scale industries but they may face problems when it comes to economies of scales. Its better to visit the international exhibitions not to participate at the very first shot, they will get thean idea about the trends, prices, fashion, etc. SME can supply exclusive, customised small order with high value, which is very much in demand for Indian market.
Q. How many % synthetics are being exported from India?
A. Do not know the exact % but synthetics are being exported more than cotton.
Q. Bangladesh Opportunity for Business
A. CMAI proposed Bangladesh government and industry, ethic wear should be exclusively bought from India.
Bangladesh pays 0% import duty but when the export is done from India the duty is more than 125%. So when we raised a question against this, Bangladesh reply was that “we have to protect our industry”. To this we had suggested that there no such thing as ethnic wear in Bangladesh so can we put a low duty to ethnic garments.
Calamities and accidents like these are not in our hands, but opportunities are always available so we have to work with commitment. There is one opportunity in which the government is also supporting is the protective wears. The main goal is not to lose hope and keep being positive in such situations and keep working hard and find opportunities to keep yourself occupied.