The way traditional Madras fabrics are woven in handlooms lent a spectacular and unique characteristic to the fabric. A fabric craft, rather an art in itself, this traditional fabric is currently in jeopardy. The plight of the Madras check industry was earlier covered.
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India is a country with 3000 years of textile tradition. The way people are dressed in the paintings of the Ajanta and Ellora caves depict that apparel industry existed in India even thousands of years before. Indian apparel industry is the second largest only next to agriculture. Indian apparel industry is vertically integrated with the availability of all required raw materials.
Earlier, during the British rule, inexpensive imported textiles destabilized Indian production. The British systematically undermined Indian handloom fabric industry for a millennia so that they could sell British made fabrics here. Cotton was exported to Manchester, and finished fabric was imported back to India. Later the industry flourished rapidly after independence.
Apparels are of two main categories; menswear and womenswear. While womenswear have a matured market in the North, menswear has a good market in the South. Menswear is mainly of knit and woven fabrics. Apparels for men consist mainly of plain shades, stripes, and checks.
Checked fabrics are developed mostly in South India, particularly in Chennai, and 300 kilometers around the city. The main reason being, lungi, the traditional men's apparel in South India is made from checked fabric. Also while at a time when tissue papers were not in vogue, hand kerchiefs were used which were made of checked fabrics. Consequently, checked fabrics flourished in South India, and the manufacturing units were mainly concentrated in and around the city of Chennai. Due to this, the city previously known as Madras, lent its name to the fabric, thus being popularly known as Madras checked fabrics.
Bleeding Madras Fabrics:
Mr. Shah fondly remembers about a pattern of Madras fabric which was a hot favorite during the 70s and 80s. Adored for its vintage look and preppy style, they were known as bleeding Madras fabrics. These fabrics are woven using yarns which were dyed only with vegetable dyes. These fabrics were woven with 4 or 5 colors on the warp, and 10 colors on the weft. When these fabrics are washed, two yarns would bleed, ie; the colors would run and other hues would intermingle giving the fabric a vintage look. Due to its nature of colors spreading therein, these fabrics were known as 'Bleeding Madras' fabrics.
The AHEA President states that earlier madras check fabrics were woven by handlooms, which made it possible to include 10 different shades. Later on when the looms became automated, only 4 colors were used on the weft, and all color combinations had to be played only in the warp of the fabric.
Predicament of the Madras Check Industry:
It is appalling the industry which has such a traditional legacy is currently in peril. Mr Shah states that in the past two years 33 units have been closed. He says, "The damage on the economic front specially for our export manufacturing base, has created far reaching consequence, that 33 old established & leading export manufacturing companies have closed, with some have transferred their activities partially largely to Bangladesh, and some have moved out of the State. " Of the 33 affected units, 22 were completely shut down, 9 reduced their operations, one shifted to Bangladesh, and one to Mumbai.
The constraints:
Mr. Shah lists down the factors plaguing the Madras check fabric industry. He states that with a looming depression in the US and EU, buyers are paying much attention to costs. "Due to the labor wage structure, here in India, if we charge even 50 cents more for a shirt, the buyer would opt for Bangladesh, were sourcing is very much cheaper" he says.
He adds, "The Government has given duty free access to 46 apparel items to be imported into India. As Bangladesh has preferential access as a backward nation, they can export apparels for lesser prices. When other countries import goods from Bangladesh, they pay lesser duties than when importing from India."
Cost of power is very higher by almost Rs.9 per unit in Chennai comparatively over the other cities. "Additionally problems we have in South, with regards to the need of competitive regular power supply adds to our woes. We have to face daily power breakdowns for an hour or two, with a result to keep factories running with generators with high cost of diesel, kills any marginal efficiency of whatever little better productivity in manufacturing apparels exists, is totally gone."
Due to inherent power shortage, factories are cutting down on their operations up to 30-40%. Even the existing factories have to be run with a generator and the diesel cost which is also very high. He says, "Further, our other costs like electricity and cumbersome import restrictions for import of fabrics make it still worse as to this disadvantage, we already have with Bangladesh. So there is practically no compensating any other advantage in place in cost structure garment manufacturing process. On the contrary it is other way round". Mr. Shah believes that these factors beyond control have caused a competitive disadvantage.
The Bangladesh threat:
Indian apparel industry is facing competition from China, but is able to overcome it. Bangladesh has become a point of concern because the border between India and Bangladesh is loose.
"Bangladesh has enjoyed great proximity with India. Due to very loose border control, movement of illegal immigrants has flourished for years. The rise of expansion of export activities from Bangladesh has critically affected, mainly apparel industries in South India, with a specific reference to Chennai region, which has similar manufacturing base as Bangladesh, which is heavily focused on woven apparel exports. Therefore, competitive background of Bangladesh has directly affected more critically, exports from Chennai Region, because most of the exports, from both these areas largely, have been in woven category. "
Mr. Shah asserts "Since last two years Bangladesh having a vast resource of cheap labor, has enjoyed an unfair advantage with practically no other indigenous industry of any kind, where almost everything in the apparel industry imported from needle to tailoring m/c's in Bangladesh, from China, Vietnam and Korea etc. "
"Thus with large population of cheap labor which cost on an average of Rs.1500/- per month to Rs.1700/-, with cost of Indian labor, with minimum wage regulation at Rs.5000 per month, offers a very direct major competitive disadvantage, especially in our labor oriented industry of apparel export manufacturing. "
Remedial Actions:
Indian apparel industry is the second largest employer and exporter. When asked what could be done to counter the issues, Mr. Shah emphasizes on the Government initiatives. "What have been achieved in way of political progress with Bangladesh is fine. But then there are inherent disadvantages for running a labor intensive, and low capital industry. The industry needs Government aid for survival which can happen in the form of subsidies, duty drawbacks etc."
When it is possible to import similar quality apparels from Bangladesh for a much cheaper price, Government policy measures are required to handle the situation. Mr. Shah states that recently around 7 international companies have signed an agreement with the Government of Tamil Nadu for investing roughly Rs. 56,000 crores in various industries generating employment for approximately 10,000 workers. He observes that out of the 33 units closed, 40,000 labors have lost their jobs. In the Madras checks fabric industry, investment is very marginal. Contradiction of modern growth has to be balanced, and attention should be given to these units.
It is also possible that big companies can take over to manage the situation. But unfortunately the nature of garment industry does not fit into corporate structure, making the process complex. Madras check fabrics have made inroads into the global market due to their quality, durability, and ethnic beauty. Industry players positively hope the situation to recover.
&sec=article&uinfo=<%=server.URLEncode(4117)%>" target="_blank">Click here to read the first part.
India is a country with 3000 years of textile tradition. The way people are dressed in the paintings of the Ajanta and Ellora caves depict that apparel industry existed in India even thousands of years before. Indian apparel industry is the second largest only next to agriculture. Indian apparel industry is vertically integrated with the availability of all required raw materials.
Earlier, during the British rule, inexpensive imported textiles destabilized Indian production. The British systematically undermined Indian handloom fabric industry for a millennia so that they could sell British made fabrics here. Cotton was exported to Manchester, and finished fabric was imported back to India. Later the industry flourished rapidly after independence.
Apparels are of two main categories; menswear and womenswear. While womenswear have a matured market in the North, menswear has a good market in the South. Menswear is mainly of knit and woven fabrics. Apparels for men consist mainly of plain shades, stripes, and checks.
Checked fabrics are developed mostly in South India, particularly in Chennai, and 300 kilometers around the city. The main reason being, lungi, the traditional men's apparel in South India is made from checked fabric. Also while at a time when tissue papers were not in vogue, hand kerchiefs were used which were made of checked fabrics. Consequently, checked fabrics flourished in South India, and the manufacturing units were mainly concentrated in and around the city of Chennai. Due to this, the city previously known as Madras, lent its name to the fabric, thus being popularly known as Madras checked fabrics.
To get a better understanding of the checked wonder, Fibre2Fashion had an interaction with Mr. Ranjit Shah, President, Apparel and Handloom Exporters Association. He states that Madras checks fabrics is being exported for years, though on a small scale. He talks about his experience with a 104 year old Company from Pennsylvania which imported Madras check fabrics from their unit. When Mr. Shah interacted with a spokesperson from the US Company, he was told that the US Company had been importing these fabrics for more than 70 years and was tailoring shirts. Now as the manufacturing costs have shot up, they are directly importing shirts from India. Mr Shah further clarifies that tailoring a Madras checked shirts requires keen attention to detail. Much balance needs to be maintained and the pattern of the outfit needs to be adjusted with the checks.
Mr. Shah fondly remembers about a pattern of Madras fabric which was a hot favorite during the 70s and 80s. Adored for its vintage look and preppy style, they were known as bleeding Madras fabrics. These fabrics are woven using yarns which were dyed only with vegetable dyes. These fabrics were woven with 4 or 5 colors on the warp, and 10 colors on the weft. When these fabrics are washed, two yarns would bleed, ie; the colors would run and other hues would intermingle giving the fabric a vintage look. Due to its nature of colors spreading therein, these fabrics were known as 'Bleeding Madras' fabrics.
The AHEA President states that earlier madras check fabrics were woven by handlooms, which made it possible to include 10 different shades. Later on when the looms became automated, only 4 colors were used on the weft, and all color combinations had to be played only in the warp of the fabric.
Predicament of the Madras Check Industry:
It is appalling the industry which has such a traditional legacy is currently in peril. Mr Shah states that in the past two years 33 units have been closed. He says, "The damage on the economic front specially for our export manufacturing base, has created far reaching consequence, that 33 old established & leading export manufacturing companies have closed, with some have transferred their activities partially largely to Bangladesh, and some have moved out of the State. " Of the 33 affected units, 22 were completely shut down, 9 reduced their operations, one shifted to Bangladesh, and one to Mumbai.
The constraints:
Mr. Shah lists down the factors plaguing the Madras check fabric industry. He states that with a looming depression in the US and EU, buyers are paying much attention to costs. "Due to the labor wage structure, here in India, if we charge even 50 cents more for a shirt, the buyer would opt for Bangladesh, were sourcing is very much cheaper" he says.
He adds, "The Government has given duty free access to 46 apparel items to be imported into India. As Bangladesh has preferential access as a backward nation, they can export apparels for lesser prices. When other countries import goods from Bangladesh, they pay lesser duties than when importing from India."
Cost of power is very higher by almost Rs.9 per unit in Chennai comparatively over the other cities. "Additionally problems we have in South, with regards to the need of competitive regular power supply adds to our woes. We have to face daily power breakdowns for an hour or two, with a result to keep factories running with generators with high cost of diesel, kills any marginal efficiency of whatever little better productivity in manufacturing apparels exists, is totally gone."
Due to inherent power shortage, factories are cutting down on their operations up to 30-40%. Even the existing factories have to be run with a generator and the diesel cost which is also very high. He says, "Further, our other costs like electricity and cumbersome import restrictions for import of fabrics make it still worse as to this disadvantage, we already have with Bangladesh. So there is practically no compensating any other advantage in place in cost structure garment manufacturing process. On the contrary it is other way round". Mr. Shah believes that these factors beyond control have caused a competitive disadvantage.
The Bangladesh threat:
Indian apparel industry is facing competition from China, but is able to overcome it. Bangladesh has become a point of concern because the border between India and Bangladesh is loose.
"Bangladesh has enjoyed great proximity with India. Due to very loose border control, movement of illegal immigrants has flourished for years. The rise of expansion of export activities from Bangladesh has critically affected, mainly apparel industries in South India, with a specific reference to Chennai region, which has similar manufacturing base as Bangladesh, which is heavily focused on woven apparel exports. Therefore, competitive background of Bangladesh has directly affected more critically, exports from Chennai Region, because most of the exports, from both these areas largely, have been in woven category. "
Mr. Shah asserts "Since last two years Bangladesh having a vast resource of cheap labor, has enjoyed an unfair advantage with practically no other indigenous industry of any kind, where almost everything in the apparel industry imported from needle to tailoring m/c's in Bangladesh, from China, Vietnam and Korea etc. "
"Thus with large population of cheap labor which cost on an average of Rs.1500/- per month to Rs.1700/-, with cost of Indian labor, with minimum wage regulation at Rs.5000 per month, offers a very direct major competitive disadvantage, especially in our labor oriented industry of apparel export manufacturing. "
Remedial Actions:
Indian apparel industry is the second largest employer and exporter. When asked what could be done to counter the issues, Mr. Shah emphasizes on the Government initiatives. "What have been achieved in way of political progress with Bangladesh is fine. But then there are inherent disadvantages for running a labor intensive, and low capital industry. The industry needs Government aid for survival which can happen in the form of subsidies, duty drawbacks etc."
When it is possible to import similar quality apparels from Bangladesh for a much cheaper price, Government policy measures are required to handle the situation. Mr. Shah states that recently around 7 international companies have signed an agreement with the Government of Tamil Nadu for investing roughly Rs. 56,000 crores in various industries generating employment for approximately 10,000 workers. He observes that out of the 33 units closed, 40,000 labors have lost their jobs. In the Madras checks fabric industry, investment is very marginal. Contradiction of modern growth has to be balanced, and attention should be given to these units.
It is also possible that big companies can take over to manage the situation. But unfortunately the nature of garment industry does not fit into corporate structure, making the process complex. Madras check fabrics have made inroads into the global market due to their quality, durability, and ethnic beauty. Industry players positively hope the situation to recover.
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