July 15, 2024

Indian Apparel Sector Productivity Can Be Hiked 15%: Dr Bheda

A management consulting firm believes the Indian apparel industry has the potential to increase productivity by 15 percent which which translates into additional income of US $7.8 billion.

Dr Rajesh Bheda, MD of Rajesh Bheda Consultants said the current value of clothing produced in India is $52 billion, of which share of domestic market is $35 billion, with rest accounted for by exports.

“We are of the firm belief that the Indian apparel manufacturing industry has immediately available improvement potential of 15 percent which can be realised within the next 12 months,” he added.

“This means the industry as a whole has a productivity improvement potential worth $7.8 billion in the next 12 months,” Dr Bheda noted.

According to Dr Bheda, one of the major reasons for not meeting the potential is the low productivity level in garment manufacturing.

The average efficiency level in Indian garment manufacturing is estimated at 45-50 percent compared to 60-65 percent in China and Vietnam.

Sharing the productivity increments achieved in various clothing factories, he said they have been able to achieve productivity improvements of between 10 to 25 percent.

This has been achieved by upskilling initiatives for experienced workers using the ‘Low Performer Improvement’ methodology of RBC.

“This has resulted in an average 20 percent reduction in process time of individual workers leading to increased worker productivity in 14 Indian factories,” Dr Bheda stated.

Dr Bheda underscored the importance of manufacturers in implementing best practices in industrial engineering, human resource management and quality systems.

Dr Bheda noted that while Indian apparel sector is focusing on modernising the sector and building new manufacturing plants, the emphasis should be on boosting productivity to bolster the sector’s strength.

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