Sealing hits Jalandhar textiles

Closure of unauthorised buildings in Delhi has led to fewer orders.

The textile industry of Punjab has also received a severe jolt from the sealing of unauthorised constructions in Delhi because it has led to a sharp decline in orders from the city, which is its largest market.

Punjab's textile industry had a strong clientele in New Delhi and due to the sealing drive, which had caused uncertainty among Delhi-based retatailers, there had been a sharp decline in the business, sources in the industry said.

Since there was no certainty about whether garment showroom owners in Delhi would be in a position to open their shops due to the sealing drive, Delhi-based retailers have ceased to place orders from India's hosiery hub, which accounts for almost 80-85 per cent sales of woollen nationally.

The small and medium units put together generate Rs 1,000-2,000 crore worth business. There are apprehensions about touching these figures for this fiscal pertaining to the trouble they are currently facing.

Manufacturers are facing dearth of repeat orders and are being forced to reduce capacities by more than 50 per cent due to non-receipt of order from Delhi clients.

Director of Ludhiana based Lakra brothers and Lakra Fabrics Ltd Dinesh Lakra said, "Our main season commences from Nov 15- Jan 15. Max sales are during the initial period. The retailers in Delhi have to sell at lower price and they are refusing to give any fresh orders due to the sealing drive."

Sanjeevan Knitwear company, makers of ' ONER' brand revealed that the yarn input capacities have declined by 40 per cent. The company was manufacturing 700 pieces per day around three months back and at present it has reduced the capacities to almost half.

Earlier, in the initial months of every years, purchasing agents used to visit Ludhiana in large numbers to book stuff, but this year very few agents came and whatever orders were booked were of very low quantity, one of the industrialist said.

Although the state's textile industry has a wide market in the country, Delhi's share is large. Now, it seems the ongoing year would have a lukewarm response to textile industry's turnover, he added.