Ludhiana hosiery industry in upbeat mood

The relevance of hosiery industry in Ludhiana could be gauged from the fact 85 to 90% demand of woollen market in India is supplied by Ludhiana

Ludhiana's famous hosiery industry is in an upbeat mood as cold wave conditions in the northern and other regions has boosted the sales. According to manufacturers, the last year's inventories, which had been lying unsold, has been cleared completely and there is more demand of fresh woollen items.

The relevance of hosiery industry in Ludhiana could be gauged from the fact 85 to 90 per cent demand of woollen market in India is supplied by Ludhiana. The total size of Ludhiana's hosiery industry is about Rs 14,000 crore, with majority of the units in small- and medium-sized entrepreneurs (SMEs) sector and supply ranging from sweaters to jackets, that caters to the demand of domestic as well as exports market.

Speaking to Business Standard, Knitwear Club's Chairman Vinod Thapar said, "For the past few years, uncertain weather conditions have had a negative impact on the winterwear business, with high inventories piling up. After the first rainfall of the season in December, they are in an upbeat mood since it is followed by chilly weather across the northern states. This year, cold wave conditions in certain parts of the country came through as a ray of hope for the dwindling industry. This is a good season for the manufacturers in comparison to last year, as our entire inventory has been cleared completely."

According to estimates, nearly 15 to 25 per cent of last year's stock was lying with the manufacturers because the winter had arrived late.

"Our inventories has been cleared and the industry is anticipating a growth of 10 to 15 per cent in sales compared to last year, as there is a huge demand of woollens from various parts of the country due to cold wave conditions," said Jagmohan Singh, vice-president, Knitwear Club. Knitwear Club is an association of about 700-800 hosiery and readymade garment makers in Ludhiana.

On being asked about growth, Thapar added, "The winter set in late which initially worried knitwear players. Till December 15, 2014, there was no sign of winter like conditions in northern region. Witnessing a minimal demand in November and December, about 90 per cent of manufacturers ceased production and relied on inventories, which was unsold last year. Generally, the units halt their production, as there is a risk the stock may pile up. So, the industry is of the view that sales would be more or less the same compared to last year, as production was halted by majority of the players. We will only get a clear picture after the end of the season."