Garment units in the small-scale industry are undergoing a change. Over 60 per cent of the units are planning to upgraded and expand capacity, says a study conducted by the Small Industrial Development Bank of India (Sidbi).
Till now, they were spending between 0.35 per cent and 1 per cent of their turnover on design and development. But the scenario is poised for a change, the study says.
Most garment units are expecting an increase in exports once the trade barriers are lifted in 2005.
While large units are expecting an increase of 30 per cent, small units have pegged their expectations at 10 per cent.
The dereservation has compelled these units to expand and diversify into high value-added items and are focusing on increasing the unit value realisation, it says.
According to the study, the small units should optimise production, set up product development and design centres, training centres and modernise production facilities by importing latest equipment.
They should also improve quality, introduce assembly line operations to reduce cost of production and diversify into variety of apparels to face competition from China, Bangladesh and other neighbouring countries.
To ensure a regular information on fashion trends and consumer preferences in other markets, they should also spend on marketing network, it adds.
The report recommends modernisation of weaving and processing facilities to improve product quality.
India's share in the Rs 9,000 billion world ready-made garments trade is 11 per cent and 3 per cent in the Rs 900 billion textile and clothing market.
