Indore RMG Manufacturers Facing Severe Capacity Crunch


The wedding season has failed to bring the traditional cheer to the Ready Made Garments (RMG) manufacturers in Indore. Despite it being a traditional peak season the manufacturers had to cut down on production by 30 percent. The decline was visible both locally and from outstation destinations too.

In fact, Indore traditionally enjoyed the reputation of being the hub of RMG. In the current season however, the RMG factories are left stranded with a pile of unsold stocks.

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“We reduced our manufacturing capacity by nearly 30 percent as demand dipped far below expectations in our peak demand season. Sales figures are very poor both in local and outstation markets,” said Ashish Nigam, Secretary Indore Readymade Vastra Vyapari Sangh.

Garment sales peak in the country during festivals and weddings. The peak ascent traditionally begins in November and lasts till June. Indore specializes in men’s wear and kids’ wear. The merchandise and marketed across the country.

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The RMG manufacturers said that the have been forced to cut down on their capacity to combat the rising pile of idle stock.  If the markets fail to pick up we may have to cut down on our capacity further, the manufacturers said.

Lack of funds and poor response has forced outstation bulk buyers to restrict their orders. The situation is worse as the rural areas reported a financial crunch despite good crops.

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