Considered one of the stalwarts of the Indian garment exports industry, Bangalore-based K Mohan Exports, in an effort to expand its manufacturing base beyond Bangalore city, has been considering setting up of manufacturing facilities on the outskirts of the city due to the rising operating costs and competition for the labour. Spearheading the operations of the company, Angie Mahtaney, CEO opines, “Yes, plans are ready but we have to do our due diligence in terms of selecting the region for a facility as it not only takes time to train the labour and bring them up to the desired efficiency and quality levels, but the size of the population of the area defines sustenance of the project.” The company has plans to shift the production of relatively lower priced and basic products to these facilities and manufacturing the value added high-end products in its existing facilities.
When contemplating the move away from the already saturated hub of Bangalore, the company did consider Bangladesh as an option but with the recent accidents, political unrests and wage hikes, the 2nd largest apparel manufacturing hub is off the table for the company. “With so much happening in Bangladesh, many people are actually seeking jobs in India, so there is no point in going to the country,” shares Angie.