Date:09/01/2008 URL: http://www.thehindubusinessline.com/2008/01/09/stories/2008010951840500.htm

Back Indian garment industry for collaboration with China

Our Bureau

Bangalore, Jan. 8 The Indian garment industry is looking to cash in on improved and cost-efficient technology from none other than its rival China. Talks are on for possible joint ventures between Indian and Chinese companies for the production of sewing machines for embroidery. Talks are also on between the Clothing Manufacturers Association of India (CMAI) and the China Sewing Machinery Association (CSMA) for setting up a training centre for operating Chinese machinery and centres where spare parts can be made available easily. There are also plans to set up bonded warehouses to sell Chinese sewing machinery directly in India.

Mr Rahul Mehta, President, CMAI, said: “If the garment industry has to grow, improved technology is extremely important as is control over costs. This is where China as a supplier comes in. China, which has captured 70 per cent market share in sewing machine production in the world, is an expert in making low-cost and technologically-sound products. Chinese products are 50-60 per cent the cost of products from other manufacturers. We are looking at co-operating and collaborating with China rather than competing.” Mr Mehta was speaking at a press conference to announce the ‘China Sewing Machinery and Accessories Show – India 2008’ to be held in Bangalore from January 10-12.

Participants

Around 100 Chinese manufacturers are expected to take part in the show jointly organised by CMAI and CSMA. The Chinese companies will display their range of sewing, cutting, CAD CAM, laser and button attaching machinery, embroidery software, finishing equipment, and garment accessories and spare parts. India has emerged as one of the main markets for China for supply of machinery. In the last few years, Chinese companies have set up representative offices in India, appointed agents and have participated in machinery shows. The Bangalore show will be first exclusive Chinese exhibition outside China.

Mr Rajendra Hinduja, Executive Director, Gokaldas Exports, said Chinese machinery is equal in quality to the rest of the manufacturers (Japan, Germany, Korea and Taiwan) and cheaper in price. The country has brought in a revolutionary change in the Indian embroidery scene.

Surat, an embroidery hub in India, imports around 20 embroidery multi-heads a day, he said. “Surat resembles a mini Chinese dormitory with so many Chinese machines running there. Tirupur too has turned to China for machinery supply. We will use Chinese machines to compete with the Chinese,” said Mr Hinduja.

Mr Mehta said talks are on between the CMAI and CSMA to set up a training centre for running Chinese machinery. It would be most likely located “close to the major centres of production – Bangalore, Tirupur or Delhi,” he said.

Mr Tian Minyu, President, CSMA, said joint ventures with Indian companies are a possibility in the future for the production of sewing machinery (embroidery) and talks are on. Mr Minyu said that apart from India, the other emerging markets for China are Latin America, South East Asia and West Asia.