India’s apparel export was Rs.1,07,679 Crore in 2017 – 18 compared to Rs.1,16,508 Crores 2016-17. Despite wavering apparel export, Labor contractors in Delhi-NCR are able to sustain their business. A majority of workers of garment export houses including operators, helpers in various departments are migratory and labor contractors are instrumental to provide labor to the export houses. All such contractors, to whom Apparel Resources, talked, agree that their business has been impacted due to less demand for labor but they have strategies to find ways to sustain business.
“No doubt, overall garment export business is down but we were able to maintain our level as we added new clients (export house) with us which are doing well. Like we added prestigious Richa Global with us,” informed Sandeep Jangu, MD, RK CO Group, Gurgaon, which supplies nearly 30,000 workers in 70 companies of Gurgaon. Overall this group has data of more than 1,80,000 headcount with itself and it supplies manpower to Addidas, Future Group, Bharti Walmart, etc.
Echoing similar opinion, Vinod Vashist, Partner, Vashisht Manpower, Gurgaon supplies nearly 2500 workers to Mohan Clothing Company (Blackberrys brand) and few other manufacturers. “As garment export is down from almost one year, we are increasing focus on automobile sector. Though this sector also does not have aggressive demand but we managed fine as Blackberrys is doing good. We got few other clients also,” added Vinod.
On the other side, some contractors which are associated with medium level export houses have different experiences and face the heat of the down trend in apparel export. Pavan Kumar, Owner, SP Enterprises, another labor contractor from Gurgaon says, “I know more than 25 such companies in Gurgaon and nearby area that have shut down completely. Many shifted from here, so negative impact on my business is natural,” added Pavan. Currently, he supplies 3,000 workers in companies like Choice Clothing and Akriti Apparels etc.
Rather than salary payment trend of piece rate, high minimum wage, no proper Government support to the apparel exporters are also creating pressure on the business of labor contractors. Some of the export houses are now paying less charges to these suppliers as export houses are also under cost pressure.