Cold wave brings cheer to winter wear manufacturers

Vijay C Roy

Tribune News Service

Chandigarh, December 31

Ludhiana-based garment manufacturers, who normally produce garments for the summer at this time of the year, are utilising their partial capacity to meet the increased demand for winter wear. Normally the manufacturing of winter wear concludes in November and the manufacturers start making garments for the summer in the first or second week of December, but this year has been a special for them. Thanks to early winter and a sharp decrease in night temperatures in Northern India and other parts of the country, the manufacturers have witnessed a significant surge in sales after nearly a decade.

Ludhiana in Punjab accounts for over 90% of the total winter wear production in India, which is pegged at around Rs 16,000 crore. Of the winter garments, knitwear constitutes around 50% of the domestic apparel market in India. There are around 12,000 units, a majority of them in the MSME category who are engaged in the production of winter wear in Ludhiana. Winter wear category comprises basic sweaters, jackets, shawls, cardigans and trousers. 

"This year has been pretty good for the manufacturers as they are witnessing a spurt in demand nearly after a decade. Due to increase in demand, the manufacturers were not only able to clear their last year's inventory, which is normally around 15-20% of the total production, but they also managed to sell the entire stock to retailers," said Vinod Thapar, chairman, Knitwear and Textile Club.

"Even the response from the retailers is encouraging, with many of them having already exhausted their stock in December itself. They have placed fresh orders with the manufacturers. Having received the orders, the manufacturers are busy in fulfilling it in a time-bound manner," he added. 

Many of the Ludhiana manufacturers cater to domestic and international brands. Also, some of them sell their winter wear under their own brand level. "Even orders from multinational and domestic brands were as per expectations of the manufacturers," said Harish Dua, a winter wear manufacturer who caters to the demand of domestic brands. 

Since the past few years, the winter season, which is normally from November to March, has been warm and affected the sales of the manufacturers, ultimately putting a strain on their business. As a result, the retailers have also tweaked their winter products mix, anticipating shrinking of the cold period.

"The weather patterns are fairly unpredictable and that is why many of the manufacturers have tweaked their portfolio. In anticipation of lukewarm demand, many of the manufacturers restricted themselves to limited production. As production was limited, the manufacturers managed to register better margin this year," said a manufacturer. 

According to industry executives, few years ago winter wear was just only a functional product, but now it has changed as fashion wear. "Earlier, customers ought to purchase hardly two to three sweaters and used it for years. But now, people purchase winter wear as per the occasion and keep on adding new clothes every winter season. This trend has also led to an increase in sales," said a senior executive working with Woodland.