'Budget expansion in electronics, food items affecting hosiery business'
Hosiery industry has not been able to do a bumper business even this year against expectations. Orders placed by different traders from across the country are average so far, and do not raise any hopes of the industry.punjab Updated: Jul 21, 2014 22:58 IST
Hosiery industry has not been able to do a bumper business even this year against expectations. Orders placed by different traders from across the country are average so far, and do not raise any hopes of the industry.
Knitwear and shawl manufacturers in the city believe that the trend of average orders for the past some years is due to the expansion of household budget among electronics and food items. Industry feels that the purchasing power of the people has not declined, but the budget has been diverted to other items.
Charanjiv Singh, secretary of the Knitwear club, said, “We recently held discussions and it was found that people are more interested in electronic gadgets, mostly mobiles, and also food items than clothes these days. This has resulted in average business by the hosiery industry during recent times.”
He said the cost of production had also increased during the past years, and imports of hosiery items from other countries were also hampering the prospects of local industry.
Hosiery industry had recently organised many buyer-seller meets in Ludhiana and even in New Delhi where orders many poured in for the industry.
Insiders say that even if the industry manages to do a bumper business, they will claim of low profits as the trade is unorganised, and there are many areas where goods are being manufactured at homes. Thus, the profit of these small scale factories are not counted in the total profit.
Knitwear club president Darshan Dawar said the business was better than last year, but not as good as expected.
“Last year the business of hosiery products was so low that manufactured stocks could not be cleared that lead to negativity in the industry. Although orders have increased this year, it has not touched the expectations of the industry,” Dawar said.
Most of the orders have been placed by domestic and international traders at the buyer-seller meets held recently. Production of hosiery goods continues till November-December and some orders for hosiery goods are received even at that time.
Hosiery business is directly related to weather conditions. Last year, due to late arrival of winters, industry witnessed losses.
Knitwear club chairman Vinod Thapar said manufacturers would start the supplies to the dealers from August. “As our business is related to weather conditions, I believe that it will revive with time and will do better by the end of this year.”