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Wastra - Blog - Where to Establish your Next Garment Manufacturing Unit?

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wastra 101in
Wastra - Blog - Where to Establish your Next Garment Manufacturing Unit?

Textile & apparel manufacturing industry in India covers almost the entirety of the country, with each region traditionally manufacturing unique products. From the Knitwear Capital “Tiruppur” in the South to the sweater hub “Ludhiana” in the North and the Denim hub of Ahmedabad in the West, these clusters have been manufacturing these products for decades now. However, recent years have seen a dispersal of the manufacturing clusters across the country due to organic and inorganic factors. On one hand, clusters such as Surat have grown organically for textiles, on the other hand, some clusters such as Jharkhand are growing because of the continued efforts and support by the state government. An investor who wishes to set up a modern garment factory in India needs to critically examine manufacturing location since a variety of factors contribute to the profitability of the business with the location being one of the most important ones.

To state an example, an investor may find a state lucrative to establish a garment manufacturing unit because of the low wages or wage subsidy being provided by the government, however, after thorough analysis, he may find that due to dominance of other manufacturing industries in the region, the sustainability of the business may be in question. This article highlights some of the important factors that must be evaluated while selecting the location for establishing a garment factory in India.

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