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Ludhiana textile firms in a fix as largest buyer halts new PPE orders
The PPE manufacturers are facing the problem of surplus production and low demand.
A section of the textile industry which saw hope in diversifying by making Personal Protective Equipment (PPE) is finding itself in a fix. The largest buyer in the country, Hindustan Latex Limited (HLL), a designated nodal procurement agency of Covid-19 emergency supplies for Government of India, has temporarily applied brakes on new orders, owing to issues concerning quality control.
There are 121 certified units for manufacturing PPEs in the state, of which 108 are in Ludhiana. At least 12 of these 108 firms in Ludhiana were the sole suppliers to HLL and received orders to manufacture PPE suits in lakhs earlier. The decision will indirectly affect other vendors as well.
A recent order by the HLL (email accessed by HT) to its vendors reads, “You are requested to stop all further supplies since we are reviewing the quality of coveralls supplied by the manufacturers.”
The orders have come as a jolt to Ludhiana’s textile industry. Ludhiana Knitwear Club president Vinod Thapar said that in these troubled times, making PPEs had come as a ray of hope to manufacturers, who worked with full zeal to meet the demand of the country. “Quality checks were conducted before the licence to manufacture was approved. It is unfortunate that the orders have been halted,” he said.
One of the manufacturers, requesting anonymity, said that HLL Lifecare Ltd instructing suppliers to stop all supplies for uncertain / indefinite time had created bottlenecks in the factories, forcing manufacturers into financial and operational difficulties.
The PPE manufacturers who are faced with the issue of surplus production and less demand are now looking at the government to open export.
“We are in surplus production already. The price of the PPEs has also fallen. We have requested government to allow exports,” said Akhil Malhotra of Shiva Tex Fab in Ludhiana.
Punjab industries director Sibin C said the orders may have been halted due to higher specifications imposed by the Union health ministry. “Since there is over production and low domestic demand, we have already requested the GOI to allow exports,” he said.
