Study On Challenges Faced by The Knitwear Industry of Ludhiana Using Elastane Blends
Study On Challenges Faced by The Knitwear Industry of Ludhiana Using Elastane Blends
Study On Challenges Faced by The Knitwear Industry of Ludhiana Using Elastane Blends
ISSN: 2395-7476
IJHS 2022; 8(2): 64-67
© 2022 IJHS
www.homesciencejournal.com
Study on challenges faced by the knitwear industry of
Received: 05-03-2022 Ludhiana using elastane blends
Accepted: 09-04-2022
Simran
Punjab Agricultural University,
Simran and Dr. Prerna Kapila
Ludhiana, Punjab, India
Abstract
Dr. Prerna Kapila The knitwear industry of India has rapidly magnified itself and is making preparations for a bigger role in
Punjab Agricultural University, the garment sector. Also, this business earns 4% of gross domestic product to the country. The sector is a
Ludhiana, Punjab, India major export earner and 11% of the nation’s export is from this sector of which 45% is drawn by knitted
products. The Ludhiana knitwear industry with a mean score of 4.75 faced high prices/ fluctuations in
prices. The problem of delayed payment of dues was faced by respondents having weighted mean score
4.30 ranking. With mean score i.e. 2.93 respondents faced instability of different types of skilled labours.
Problems of power supply like high cost with mean score 2.75 and scarcity with weighted mean score
1.45 were faced by manufacturers of Ludhiana. Units doing export faced lack of geographical and
demographical knowledge calculated mean score 3.65. Respondents with a mean score of 4.75 believed
that advanced technology machinery required for production is costly. All of the respondents were
finding difficulty in local procurement of parts of machinery and raw materials during covid times and
were also witnessing decrease in sales prices due to global oversupply, no increase in new clients or
markets, major clients requesting lower prices and only 30% of respondents said there was decrease in
orders from clients.
1. Introduction
The knitwear industry is well-diversified and more than a century old in India. It originated in
Calcutta and later spread to other parts of the country. It is believed that Khidderpur, West
Bengal saw first small scale hosiery which was started in 1893. (Anonymous 1997) [1]. The
knitwear industry is leading because of two reasons, primarily the fact that apparel
manufacturing includes huge human resource, and secondly, in comparison to other units, the
barriers to entry are relatively low and also lesser investment is required. The industry has
witnessed growth and made significant contribution to the economy of the country. (Vohra
2010) [7].
Knitted fabrics holding elastane percentage provides high level of easy usage and comfort
owing to the drape and elasticity attributes. In knitted apparel, original shape of garment is
retained easily as it responds to every body movement so they are genuinely used in apparel
manufacturing. The most crucial characteristics attained from knitted apparels containing
elastane are breathability, fit wear, longevity and comfort. In the past few years, the call for
more relaxing and comfortable clothing, which is more adaptable to the body and has elasticity
is being preferred by customers which has led to increased demand of elastane-containing
denim fabrics for casual and athletic wear (Eryuruk and Kalaoglu 2016) [5].
Bories (2019) [4] stated that in every kind of form-fitting garments, 5-10 per cent of elastane is
found in casual, formal as well as sportswear categories. The popularity of elastane due to its
elasticity has increased its usage in almost all kinds of apparels where performance factor is
primary need i.e. for yoga outfits, bike shorts, swimwear, hiking pants and shorts as well as
inner wears. Elastane is suitable for body fit garments used in intensive physical activity which
provide breathability and stretch ability.
Knitted garments like t-shirts and underwear were produced using single jersey knitted fabrics.
Corresponding Author: A ratio of spandex fibre which is popularly known as “Elastane” was blended with cotton
Dr. Prerna Kapila
Punjab Agricultural University, fibres in order to enhance its properties and attain recovery performance of circular knit fabrics
Ludhiana, Punjab, India (Kaur 2009). Knit fabric can get easily deformed or stretched by compressing or elongating the
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individual stitches that form the fabric. Cotton yarns, which the following heads:
are not elastomeric, do not have the ability of recovery to 1. Financial structure of units
rearrange the stitches. As a consequence, single-knit fabrics 2. Problems related to raw material
may have permanent deformation. To improve the recovery 3. Finance related problems
performance of circular single-knit fabrics, it is now a 4. Labour related problems
common practice to knit a small amount of spandex fibre or 5. Electricity related problems
yarn with companion cotton yarn (Azim 2014) [3]. 6. Problems faced in export
Indian textile industry has been witnessing a big structural 7. Problems in production process
change, continuously reinventing and rediscovering it to meet
the needs of the stringent global buyers. Indian Companies The results of the investigation done on knitwear units of
have started raising their standards and also aggressively Ludhiana using elastane blends obtained have been
pursuing their human resource strategies aimed at image summarised below:
building as well as overall growth. India is emerging to set up
strong vertically integrated textile operations and aiming to 3.1 Financial structure of units
become a leading source to the world for its high-end textile Financial structure refers to the combination of debt, equity
needs (Tandon and Reddy, 2013) [6]. and liability which contributes in financing assets of any
When we investigate about apparel industry in India, despite business entity. As per revised classification, units having
its strength in woven manufacturing, the knitwear industry in investment in plant and machinery below rupees 1, 00, 00,000
India is on a double-digit growth trajectory. The knitwear are categorised under micro enterprises provided that turnover
industry of India had rapidly magnified itself. This industry is is below rupees 5, 00, 00,000. Manufacturing firms having
making preparations for bigger role play in garment sector. investment in plant and machinery or equipment less than
India holds its strength in being the largest producer of cotton. rupees 10,00,00,000 with turnover not more than rupees
This had fulfilled the basic requirement of industry by 50,00,00,000 are classified under small enterprises and
providing abundance of raw material to the industry. Value medium scale enterprise are enterprises with investment in
chain, competitive spinning sector and highly trained man plant and machinery which is below Rs.50,00,00,000 and
power had been directly favouring the knitwear sector of turnover does not exceeds rupees 250,00,00,000 (Anonymous,
India. The diverse nature of the industry aids its 2020).
manufacturing facilities, apparels produced, cost, fabric Out of 40 surveyed units manufacturing elastane blended
needs, and the quality of its output. On the contrary, its products it was found that 32.50 per cent of units were micro
fragmented nature, due to reservation of production for small followed by 37.50 small scale enterprises and only thirty per
companies, has distorted its competitiveness. Globalization is cent of production houses were categorized under medium
now posing a threat to the local markets, and exporters scale units.
(Anonymous, 2018) [2].
Knitting factory in Ludhiana holds expertise in offering Table 1: Classification of the units on the basis of size
knitted fabric to their esteemed clients. A wide collection of n=40
knitted garments and fabrics had different sizes with unique Size of unit f %
patterns in different colours. Garment manufacturers of the Micro scale units 13 32.50
knitwear sector of India had to make sure that they meet the Small scale units 15 37.50
quality of the products that they had ensured their customers. Medium scale units 12 30.00
Production houses having intentions to enter export were f – Frequency % - percentage
carefully and effectively following the international standards
making sure they would follow them religiously. Units 3.2 Problems related to raw material
producing garments had prioritised quality standards and Thapar, 2014 revealed in his study that high cost of raw
various other factors related to quality manufacturing of material had been responsible in making Indian knitwear
products were standardized. These production houses had industry lose advantage to the small neighbours.
capability of offering high quality knitted fabrics to their It was seen that majority of the respondents with mean score
customers in bulk amounts catering to both international as of 4.75 faced high prices/ fluctuations in prices followed by
well as domestic markets. mean score 4.13 of units which faced scarcity of raw material
because of covid crisis followed by mean score of 2.55 which
2. Research Methods believed that there was problem in transportation and only
The locale of the current investigation was Ludhiana city and 1.83 mean score units believed material delivered to them was
various units using elastane yarn for manufacturing knitwear of poor or low quality of raw material was delivered to them.
products were selected. For this purpose a questionnaire was
prepared for collecting data and 40 units were selected for Table 2: Problems of manufacturing units related to raw material
conducting the research using random sampling technique as n=40
it was considered to be the most appropriate method. Problems related to Raw material Mean Score Rank
Therefore the respondents were questioned about problems High prices / fluctuation in prices 4.75 I
faced by respondents in relation to labour. Percentages, Poor / Low quality 1.83 IV
frequency and weighted mean score of the data were Problem of transport 2.55 III
calculated. Scarcity 4.13 II
stated that the major business-related issues faced by 3.5 Electricity related problems
entrepreneurs due to COVID-19 include the radical effect on The knitwear industry is highly dependent on electricity in
the working capital of the business and on future marketing order to complete the orders. Therefore respondents were
campaigns to seek new orders. questioned about the electric supply.
Therefore the problems faced by the manufacturing units were The government claimed to make the state power surplus.
recorded and ranked. The problem of delayed payment of “Hike in power charges by the PSPCL is another reason
dues was rated highest among all having weighted mean score behind the downfall of the industry. The power rates have
4.30 which was followed by high rate of interest ranked been raised arbitrarily. Unable to bear the burden, small units
second, scoring 2.73 weighted mean. Shortage of finances had no other option, but to shut down. (The tribune, 2015).
was ranked fourth (weighted mean score 2.70) followed by It was found during the investigation that on comparison,
procedural difficulties which was ranked fifth scoring High cost of electricity (mean score 2.75) and scarcity of
weighted mean score 1.70. The improper allocation of funds electricity (weighted mean score 1.45) was the top most
(weighted mean score 1.63) followed by lack of collateral problem faced by units manufacturing elastane blended
security for guarantee (weighted mean score 1.55) and garments. Uncertainty due to power failure (weighted mean
shortage of funds (weighted mean score 1.53) were ranked score 1.45) was ranked lowest.
least.
Table 5: Problems of manufacturing units related to electricity
Table 3: Problems of manufacturing units related to finance supply
n=40 n=40
Weighted Problems related to electricity Mean Score Rank
Problems related to finance Mean Rank High cost 2.75 I
Score Scarcity 1.45 II
Delayed payment by the buyer 4.30 I Uncertainty due to power failure 1.28 III
High rate of interest 2.73 II
Improper allocation of funds 1.63 VI 3.6 Problems faced in export
Lack of collateral security for guarantee 1.55 VII Export is important for any nation today across globe. Export
Procedural difficulties (Red - Tapism in includes sending (goods or services) to another country for
1.70 V
the financial institutions) sale. The knitwear units of Ludhiana and Tirupur export
Shortage of finances for working capital 2.70 III
knitwear to various countries. (Lotika, 2019)
Shortage of finance for fixed capital 2.03 IV
Shortage of funds (credit sales &
1.53 VIII Table 6: Problems related to export of knitwear
delayed settlement of accounts)
n=40
3.4 Labour related problems Mean
Problems related to export Rank
Human resource is crucial for any production house and Score
industry is directly dependent on it. The COVID-19 pandemic Improper knowledge about market channels 1.80 IV
has seriously affected the growth of textile industry. Many Inefficiency to generate foreign orders 2.58 III
Lack of knowledge of foreign markets 3.13 II
textile units have stopped their production. The crisis had
Lack of geographical and demographical
been pushing the textile entrepreneurs for taking tough knowledge
3.65 I
decisions such as lay-offs, introducing pay cuts, and asking
employees to go on unpaid leaves. Another major business
Majority of units with highest mean score i.e. 3.65 faced lack
issue involved in this is that there are many migrant workers
of geographical and demographical knowledge followed by
working in the industrial segment of Punjab. Owing to
lack of knowledge of foreign markets (weighted mean score
unemployment due of lockdown, they were forced to move to
3.13) followed by inefficiency to generate foreign orders
their native places. Thus, such workers will remain
(weighted mean score 2.58) and improper knowledge about
unemployed in the near future as well. (Kiranpreet, 2021)
market channels (weighted mean score 1.80).
Table 4: Problems of manufacturing units related to labour
3.7 Problems in relation to production
n=40 The knitwear industry in Ludhiana is over one hundred years
Mean old and enjoys reverence and status of mother industry of
Problems related to labour Rank
Score Punjab. In spite of being the major revenue generator, the
Absenteeism 2.10 III knitwear industry is facing several problems. It was found that
Compensation for fatal accidents 1.38 VI
majority of units with highest weighted mean score i.e. 4.75
Instability of different types of skilled labours 2.93 I
believed that advanced technology machinery required for
Skilled Labour with pervasive intelligence 2.53 II
Trade Union demanding more facilities 1.65 IV
production is costly followed by weighted mean score 4.50
Unskilled Labours 1.43 V which was rated to problems of inadequate funds to construct
water effluent. The problem of lack of government assistance
Therefore the respondents were questioned about problems in up gradation of technology with weighted mean score 2.30
faced by respondents in relation to labour. Majority of units was ranked third followed by problem of under-utilization of
with highest mean score i.e. 2.93 faced instability of different machines which was ranked fourth having weighted mean
types of skilled labours followed by Skilled Labour with score 2.18.
pervasive intelligence (weighted mean score 2.53). Lack of machinery accessories was ranked fifth with weighted
Absenteeism was ranked third (weighted mean score 2.10) mean score 1.70, followed by poor maintenance of
while Trade Union demanding more facilities were ranked machineries with weighted mean score 1.70 ranked sixth,
fourth (weighted mean score 2.10). followed by Injuries to human health which was ranked
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seventh with weighted mean score 1.45. The problems posed All the respondents witnessed decrease in sales prices due to
by Govt officials from Pollution Control Board (weighted global oversupply, no increase in new clients or markets,
mean score 1.43) and rapid up gradation (weighted mean major clients requesting lower prices and only thirty per cent
score 1.25) scored least hence ranking last. of respondents said there is decrease in orders from clients.
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