To promote apparel cluster and boost exports, Ludhiana-based apparel industry will seek the Centre’s assistance in setting up a Common Facility Centre (CFC). The facility will have state-of-the-art machinery such as a design studio, quality control facility etc., which member units cannot afford to acquire individually. The proposed CFC would be promoted through a special purpose vehicle.
SS Bedi, Cluster Development Manager, Ludhiana Apparel Cluster, said, “Ludhiana is one of the prominent hubs for apparel sector in the country. The city has over 12,000 units engaged in knitwear, winter wear and shirts but the cluster doesn’t have any CFC to address the issues confronting the apparel industry. The industry is plagued with issues such as obsolete technology and quality. So, in order to give fillip to this sector we will propose to the Ministry of MSME to grant a CFC.”
“Under the Micro and Small Enterprises Cluster Development Programme, the ministry can support the entrepreneurs with a grant ranging between 70-90% of the cost for setting up the CFC,” he added.
The CFC will be managed by a special purpose vehicle (SPV). Currently, around 25 members have been identified for the SPV. After the formation of SPV, Bedi said, detailed diagnostic study report (DSR) will be submitted to the ministry for the financial assistance to be sanctioned under the cluster development programme.
Most of the manufacturing processes of member units would be done at the cluster. The cluster would take care of manufacturing using latest machines, designing and product testing. Under the scheme, member units would be given an opportunity to move out of the umbrella if they learn the processes and manage to set up the required machinery.
Ludhiana-based garment manufacturers are already facing a stiff competition from imported garments, especially from Bangladesh where production cost is much lower. In such a scenario, the setting up of the CFC will assist them in acquiring cost-effective products and new designs of superior quality.
Over 12,000 units in Ludhiana
There are over 12,000 units engaged in apparel sector in Ludhiana
The total size of the domestic garment industry is around Rs 25,000-30,000 crore
Of this, woollen garments constitute 10-15%, with Ludhiana alone contributing 90% of the winter line
In addition to this, it has also a significant share in garments made from cotton