We aim to increase the usage of renewable sources of energy in our factories
Established in 1973, Nayon Exports is a garment export house based in Mumbai, India. The company started as a pioneer in bringing plus and super plus women’s clothing to the US market, and this soon led to supplying apparel in multiple size ranges to buyers around the world. Starting from the design stage and production to ensuring the goods reach its buyers on time, the family-owned company ensures seamless service to all its buyers. In an interview with Fibre2Fashion, Partner Priyank Shah discusses apparel manufacturing in India and demand in both export markets.
How strong is the demand from export markets currently?
The demand from export markets has been irregular and subdued for some time now. After the onset of the COVID-19 pandemic, many retailers purchased a significant amount of apparel due to a spike in demand and fear of potential supply chain disruptions, which caused them to be overstocked. Inflation, the Russia-Ukraine crisis, and recessionary trends have further weakened consumers’ purchasing power, resulting in even more inventory build-up.
When do you anticipate the situation will improve?
I anticipate that it will take at least another six months for this issue to be resolved. We are hopeful for a stabilised market by the end of this year, with good orders expected for Spring/Summer 2024.
How would you explain the condition of the Indian apparel manufacturing sector?
The Indian apparel manufacturing sector appears promising, but there are several obstacles that require solutions. Despite the growth of automation in the industry, the sector’s expansion is directly linked to the availability of skilled production manpower, which is a major hurdle. There has been a significant decrease in new workers joining the industry due to the availability of opportunities in other sectors that are less labour-intensive and provide better income. Joint collaborations between government-run schemes and private companies are necessary to address this issue. Much work needs to be done in this area.
What steps are necessary so that Indian apparel manufacturers are able to better compete with countries like Vietnam and Bangladesh?
To compete with countries like Vietnam and Bangladesh, garment manufacturers and the government need to take significant actions. Finalising Free Trade Agreements (FTAs) with the UK and the EU should be a priority so that the landed cost of an imported garment from India becomes lower. Similar FTA agreements should be established with other countries. The government should also reconsider incentives that are based on vote bank politics, as they make people less inclined to work. Garment manufacturers should view automation as a long-term investment rather than a current capital expenditure. As previously stated, a joint collaboration between the government and manufacturers is required to address the shortage of skilled and unskilled manpower.
What is your annual production capacity?
We have capacity to produce 35 lakh garments per year.
Which are your main markets?
Before 2015, our primary markets were the US, South America, and the Middle East. However, since 2015, we have also started manufacturing for domestic retailers, and currently, we have an equal distribution between exports and the domestic market.
What are your sustainability targets for 2025?
By 2025, we aim to increase the usage of renewable sources of energy in our factories, which currently account for 40 percent of our total energy consumption. With the assistance of our buyers, we have boosted the production of garments utilising recycled polyester yarns, sustainable viscose yarns, and Better Cotton Initiative (BCI) cotton. We are also promoting the use and benefits of recyclable yarns to other buyers. We have successfully partnered with non-profit organisations to donate old machines for training and empowering rural women to eventually enter the garment industry. These collaborations have also helped in the better utilisation of raw material waste.
What are some of the current consumer trends in export markets?
Although it is still early to say, we are witnessing a gradual increase in demand for slow sustainable fashion. Buyers are starting to shift their preferences from fast fashion to slow sustainable fashion, and they are willing to pay a premium for it.
Published on: 28/02/2023
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.
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