Garment makers divided over FDI in multi-brand retail

[sherlyk]

Punjab-based garment makers have welcomed the Centre’s move to allow FDI in multi-brand retail and see it as an “opportunity”, while manufacturer-cum-retailers have termed it as a “threat to local brands”. Favouring the Centre’s move to allow 51 per cent FDI in multi-brand retail, garment makers say it will bring in more opportunities for them in the shape of getting big size orders from global brands like Wal-Mart and forging exclusive partnerships with international players.
However, local garment brands who are also into manufacturing, are wary of opening of large shops by global retailers, suggesting that it could hurt their “well-established” domestic market.
Despite the fact that there was a hue and cry over allowing FDI into multi-brand retail across the country, garments makers have termed it as move in right direction.
“Because of the 51 per cent FDI allowed into multi-brand retail, garment units here will open more possibilities for local players to supply their garments by giving large volume of order size to us which will further boost the local garment and terry towel making in the state,” Ludhiana-based garment maker, Ajit Lakra told PTI.
Lakra supplies garments to big brands like Reebok, Spencer and Benetton.
Local players also see the opportunity in having a joint venture with global retailers like Wal-Mart for producing exclusively for them to cater to Indian market.
“We can have an exclusive arrangement with international retailers for making garments for them only and it will provide a fillip to the manufacturing sector who usually get small size of orders from big brands at present,” he said.
On the other hand, local garment brands are apprehended over the entry of brands big brands into retail sector.
“If companies like Wal-Mart opens their shops here, they can pose stiff competition to domestic brands like ours as they have the capacity and resources to offer wide variety of items to customers,” Ludhiana-based Duke Group Chairman Komal Jain said.




Keywords:Punjab, garment makers, FDI in multi-brand retail , manufacturer-cum-retailers,global brands , Wal-Mart , international players,domestic market, local garment ,terry towel making, PTI,Lakra supplies garments , Reebok, Spencer , Benetton,Duke Group Chairman ,Komal Jain .

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