Kolkata, the workwear capital ofIndia, is set to break the conventional mindset of manufacturing and get amakeover for better growth and efficiency.
West Bengal has the biggestdomestic workwear brands and export companies but still remains less industrialisedcompared to other textile and apparel hubs in India. Kolkata-based workwearcompanies like JPM Exports, Rama Overseas and Mallcom (India) are looking toconsolidate their manufacturing operations to reach their potential as apparelmanufacturing hubs. These companies majorly cater to European markets, and workthrough a network of importers and distributors, supplying to a wide range ofindustries and retailers.
ThePlayers:
Recognised by the Government ofIndia and Star Export House JPM Exports is a leading manufacturer and exporterof workwear, sportswear and outdoorwear from India and Bangladesh. Establishedin 2009, the company has grown at the rate of 100 per cent since its inceptionand plans to surpass the turnover of $15 million (Rs 100 crore) this financialyear. JPM started with manufacturing gloves and ventured into workwear. Fordiversified growth, JPM is working with Dickes, F Angel Denmark and Wruth forworkwear exports and Diadora, an Italian company for sportswear.
In the domestic market for casualwear, the company has started with Mahindra Retail, Pantaloons and Decathlonfor stores in India. JPM has 600 sewingmachines divided in a centralised unit and smaller satellite units that produce200,000 units of workwear, 200,000 units of outerwear and woven casuals and 400,000units of knit sportswear and casual wear every month.
Another workwear manufacturer RamaOverseas, established in 1975, started business with exports of finishedleather to the Far East. In due course, the company integrated and mastered theart of making leather gloves adding to the product range they manufactured andexported safety garments.
The factory in Kolkata produces 700,000pairs of gloves including leather gloves in cow grains, split leather and waterrepellent treated leather. They produce 100,000 pieces of workwear every month.Rama overseas generates 100 per cent of its revenue from the internationalmarket. To influence the quality of leather from its raw stage, the company hasa tannery at the Kolkata leather complex.
One of the dynamic and mostprogressive workwear manufacturers in Kolkata is Mallcom (India) Ltd, a Governmentof India recognised trading house engaged in manufacture, export anddistribution of a wide range of Personal Protective Equipment (PPE) since 1983.Mallcom has been in the news for good reason since its inception. In August2015, Mallcom received the Encon award and in September 2015, Mallcom wasrecognised in a prestigious Bengal Entrepreneurship Award forum.
The company has grown to become a
complete workwear solution provider. The company registered a steady growth of
20 per cent Year after Year (YOY) in all categories. Mallcom generates annual
revenues upwards of US$ 45 million (Rs 300 crore). With six production
facilities in Kolkata and one in Uttarakhand and two units each for apparel and
safety shoes and one unit each for leather gloves, it produces 8 million pair
of workwear gloves, 1.08 million units of workwear and 1.2 million pairs of
protective footwear. Mallcom supplies to companies such as BMW, Audi and other
end users through a third company.
Mallcom is an investor-friendly
company and focussing on fundamentals to deliver the best returns to
shareholders. This consistency reflects in the figures and the un-interrupted
dividends paid to shareholders for 30 years.
The Need
and the Makeover Journey:
All three companies JPM Exports,
Rama Overseas and Mallcom India have realised the need to have centralised
manufacturing operations. Reasons include:
• Reducing manufacturing costs
• Taking bulk orders
• Uniformity in quality
• Accommodating business coming out of China
China is the biggest exporter and
manufacturer of workwear products and is far ahead of India in workwear,
despite rise in labour costs. Companies in heavy industries like steel or
automobiles buying such clothing do not mind paying a little higher for uniforms.
India is being looked at as the next option to relocate production to if labour
costs shoot up further. However, buyers are sceptical about the ability of
Indian workwear market to handle bulk orders because of unorganised style and
decentralised manufacturing.
JPM Exports established its first
centralised apparel unit in April 2015 with 350 sewing machines and an area of
40,000 sq ft at RDP Apparel Park in West Bengal. The unit plans to have five
sewing lines for workwear and four lines for knit casual wear. The complete
unit will be functional by November 2015. Now, two sewing lines are
operational. Once this capacity reaches 100 per cent utilisation, the company
will add another unit in same park with 350 sewing machines.
JPM Exports hired experienced
people from established workwear manufacturing industry to help the company
establish and streamline, as it is a difficult task to train employees, used to
working at will, to put in a shift of eight hours.
Rama Overseas has a typical Kolkata-styled
manufacturing where it has more than 700 sewing machines spread out in 15
smaller units, of which 300 machines are allocated to workwear divisions and the
rest to gloves. Rama Overseas plans to relocate its unit in Tiljala Road,
Kolkata, the centralised unit for cutting both workwear and gloves. The cut
parts are sent to the sewing unit and after processing, the sewing unit sends
back finished goods to the centralised unit.
Mallcom India has purchased land
60 km from Kolkata for its Greenfield facility. The company plans to train 1,000
unskilled people for the upcoming unit as per the requirements of the company,
as it would be difficult to mould already trained employees. Like JPM Exports,
Mallcom will also centralise its many small sewing units scattered in Kolkata
city. This upcoming centralised unit will be dedicated exclusively to workwear
apparel. The company may also seek intervention of a foreign consultant for
this project.
The
Global Workwear Market:
Globally, the market for workwear
is good and the industry is set to grow 6 per cent from 2015 to 2019. Despite a
slowdown in the European market, other destinations like South America, Australia
and South Africa are lucrative. According to new market research report on workwear,
growth in the short- to medium-term period is at its robust best in emerging
markets of Asia-Pacific, Middle East and Latin America. Growth in the
Asia-Pacific region primarily stems from developing nations like China and
India which are not only gaining popularity for being most trusted destinations
but also represent large markets promising sales prospects.
North America accounts for 41.2
per cent of total workwear revenue, and is predicted to dominate till 2022.
Undergoing rapid industrialisation, the Asia-Pacific is expected to witness the
highest growth of 7.9 per cent from 2015 to 2022, surpassing North America. Frost
& Sullivan's report on workwear showed that the western Europe market is
set to rise to € 7.4 billion ($ 8.1 billion) by 2017. In the United Kingdom
alone, the sector's value is fast approaching € 1 billion per annum.
Workwear
Market in India
Emerging trends in
workwear is adding a fashion element to workwear. Traditionally, workwear has
been associated with uniforms and single-coloured apparel. Workwear is making a
shift from traditional designs to youthful designs such as low cut trousers
made from functional textiles.
Currently, the domestic
workwear market is estimated to be around US$ 357 million and is projected to
reach US$ 1,108 million by 2021 growing at an impressive Compound Annual Growth
Rate (CAGR) of 12 per cent. It is estimated that jackets and trousers will
witness the highest growth of 15 per cent and 14 per cent respectively,
outpacing the domestic market growth of basic workwear.
The workplace is set to
get more interesting.
References:
1. Dnb.co.in
2. Ramaoverseas.com
3. Jpmexports.com
4. Apparelresources.com
5. Prweb.com
6. Frost.com
7. Business-standard.com
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