Garment manufacturers cut production by 20per cent amid low demand – ET Retail


Readymade garment manufacturers of Indore have curtailed production by over 20 per cent since Diwali amid a decline in demand from regular outstation markets and subdued orders for Eid.

After Diwali, weddings followed by Eid are the principal occasions for the garment sector that witnesses a substantial surge in business, but lacklustre enquiries for Eid this season have resulted in diminished production at most homegrown units.

“Eid demand is subdued. Most manufacturers have reduced production by 25-30 per cent due to sluggish demand from the market. There was a slump in demand post Diwali and it failed to recover even in February. Advance order book is weak due to tepid demand,” said Ashish Nigam, president of Readymade Textile Dealers Association.

According to the Readymade Textile Dealers Association, export of readymade garments to gulf countries has progressively improved in recent years with numerous homegrown units venturing into exports though fierce competition maintains the margin on lower side.

Garment manufacturers said the demand for Eid typically commences at least a month in advance from retailers and overseas markets. Eid is expected to fall on March 30, 2025 or March 31, 2025 depending upon the sighting of the moon.

The garment industry of Indore is home to more than 1,500 small-scale readymade garment manufacturers.

“We are proceeding cautiously with manufacturing because demand is not substantial and advance orders from the market are quite weak. Though we are optimistic that the volume may increase in the coming week and subsequently we will enhance our capacities,” said Rohan Agrawal, a garment manufacturer from Indore.

According to manufacturers, Tamil Nadu, Andhra Pradesh, Haryana, Rajasthan, Uttar Pradesh, Maharashtra, and Gujarat are the primary markets for Indore’s readymade garments, with nearly 50 per cent of supplies destined for southern India.

  • Published On Feb 4, 2025 at 11:26 AM IST

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