Chill warms up hosiery hub

The prolonged winter has given a boost to the troubled hosiery industry in Ludhiana, 
reports Shveta Pathak

Most manufacturers cleared old stocks as well as raised production. — A Tribune photograph

Vijay Ghai, owner of Priknit Retails, is busier than he was last year. As he supervises the ongoing work at his factory near the Jalandhar bypass in Ludhiana, he said the "unexpected activity" has brought joy to all concerned, right from himself to his office staff and factory workers.

The production of woollens at his factory, which he had expected would end by January, is still on and is likely to continue at least till the end of the month. The company’s finance department expects the turnover to touch a whopping Rs 140 crore, a growth of almost 100 per cent.

Ghai is not the only one feeling on top of the world this prolonged winter. Ludhiana, the hosiery hub of the country, has thousands of others who are thanking God for this bounty, particularly when each year was recording a decline in business.

Till last year, each winter was shrinking and recording lesser demand for woollens. The scenario underwent a major change this time and has revived the troubled hosiery business.

"Surprisingly, the season was very good and we are still manufacturing. Extended winter gave our business a boost and the impact will show in the coming year too. Most manufacturers not only cleared all old stocks but also had to raise production this time," says Ghai.

Good business led to hectic activity in all departments in production houses and even retail business got busier. "We introduced the summer collection as we work according to fixed schedules but are surprised to note that the sale of woollens at our stores has been double the sale of summer wear," says Bipan Jain, managing director of leading fashion brand Madame, which is expecting an 80 per cent rise in its turnover.

Apart from in-house production, most fashion brands outsource their production to smaller units. According to estimates, there was an increase of around 30 per cent in outsourcing, which means more employment and better business for small units, including the ones working from their houses.

There have been a number of other changes — in consumption patterns, in terms of price preference and even the latest designs. While brands like Madame and Priknit — which cater to the upper middle segment — witnessed the entry of new customers, others too recorded a similar trend with heavy buying for the next winter. A section of people, who were earlier restricted to ‘non-branded’ wear on account of pricing, went in for fashion brands this time. Even knitting yarn sold high.

"The demand was significantly up this time and people preferred fancy, colourful knitting yarn," said V.K. Goyal, chief executive of Vardhman Spinning and General Mills.

The last two months saw a plethora of discount sales and the industrial town had visitors from neighbouring areas too. "Customers got good bargains as leading brands came out with attractive discounts. There has also been heavy purchase for the next winter. Keeping this in mind, the production in the last phase had alterations in designs that would be relevant for the next season too," said Komal Jain, chairman of Duke.

Among the high-selling items were jackets and long sweaters, said manufacturers. The good news for consumers does not end here. The impact, say manufacturers, would be visible next year too. "The coming winter too is likely to benefit. For customers, there would surely be better variety, more designs and good bargains," added Ghai.