Garment machinery business claws back lost ground

Garment machinery business claws back lost ground
The News – International, Pakistan
By Hina Mahgul Rind

KARACHI: In recent years the local garment industry hit upon hard times. Particularly in 2014, the industry witnessed a slump of considerable proportions. This was the year when many factories producing knitwears, towels, home textiles, jeans, etc., were closed down after they faced heavy losses and cut-throat competition in the global market.

While some units did close down, many others nevertheless chose to expand. So over the last five months, from December 2014 to April 2014, investment is taking place and machinery sales are on the up. We are witnessing some increase in our business as a result, said Asif Ali Rasheed, a top executive of Al-Murtaza Machinery.

He said the year 2014 was very bad for the sector. There was a lot of depression in the industry.

He said he talked to many textile people and their standpoint was that when profitability in other businesses was much greater and investment in the textile sector was not yielding high rate of return, they felt impelled to stop pouring money into this enterprise.

“They say that if the same investment is done in real estate, the rate of return is not only high but also very quick,” he said.

The sales of garment and other related machinery saw a 30 percent decline in 2014 but “we are optimistic about the year 2014”.

There is an apprehension that China may take an overwhelming market share of the world “but I don’t agree with this line of thinking because practically it is not possible for China to take over such large supply of the commodity”.

Though the textile sector is facing a crisis situation, it is the one buttressing the nation’s economy. It will remain the key sector of foreign exchange earnings. It is advisable for Pakistan to promote export of other goods to decrease dependence on textiles, but until such time this comes to fruition, the textile sector will remain the major sector, he said.

Asif Ali Rasheed said that Al-Murtaza has come up with latest technology on the cutting side. Electra machinery from France, which the company has introduced, takes care of cutting, marking, and grading.

The computerized marking and cutting achieves 100 percent accuracy. The company has also offered free of cost software for all the technical training institutions of Pakistan. If only they buy the hardware, the company will provide the software.

“On the value addition side, we have brought the world’s first 50-head embroidery machine which increases the efficiency, quality and quantity,” he enthused.

“We have brought the laser cutting machine and also, for the first time, brought software from Russia for curtain designing. The software is especially for home textile industry and interior decorators.”

He charged that the Export Promotion Bureau is not doing anything to promote the marketing, though they have funds for this. One of the key marketing tools now available is online marketing. “I have written to them and suggested that this initiative should be taken in order to provide a smooth marketing platform. The EBP can do a one-time job by creating a website. But the bureaucracy is not interested in working hard. This is one reason why we are far behind,” he lamented.

The website, he said, should showcase all the exporting products of Pakistan. Particulars of active export items should also be provided so it becomes easier for clients to access them. “I would suggest that EPB should also make fashion designers’ websites with necessary information.”

He said there is a demand for Pakistani products abroad, especially for designers’ products, but they have no way to access them. “There are more than 2000 designers but EPB has got a list of only twenty-five. They don’t let the newcomers come forward,” he alleged.

He said we need to encourage foreign companies to have franchise in Pakistan, because they will bring with them both the marketing and manufacturing expertise.

“We have the latest technology in the world but only about four to six industries are using this technology. The widespread use of the latest technology is required,” he said.

The new technology is coming but at a very slow pace, he noted and went on to add that efficiency of production should be there. “We have acute shortage of good middle management. It’s important to overcome this shortage temporarily by bringing people from Sri Lanka,” he said.

Pakistan, he said, has hired Kurt Salmon consultant for five leading firms of the country. From the industrial side, marketing is very weak. It has to be improved. It should be done with the help of foreign consultants, ministry of commerce, the Export Promotion Bureau and, mostly, our commercial consuls abroad.

“We were very positive that Pakistan would become the third country in the world after China and India. But we were given a rude shock when Bangladesh became the third country and not Pakistan,” he said.

He said many factors are responsible for this, the first being subsidies. The governments of India, China and Bangladesh are providing low rate of interest, cost-effective utility services, and cheaper land.

These all lead to low-cost of production as compared to Pakistan. There are so many agencies which are harassing the manufacturers and they are interested in getting money for themselves, not for the government.

There are restrictions on importing textile machinery from India but some low-quality swing machines are coming and some machinery is also coming via Dubai but not directly from India.