First Tier Garment Exporters in Delhi: Industry and Company Perspectives

FIRST TIER GARMENT EXPORTERS IN DELHI:
INDUSTRY AND COMPANY PERSPECTIVES
A Collaboration Between
United Students against Sweatshops
Jobs with Justice
Society for Labour and Development
March 2007

TABLE OF CONTENTS PAGE NUMBER
Chapter One: Introduction............................................................................ 3
1. Methodology..............................................................................................................3
Chapter Two: Agency Profiles
1. Registrar of Companies (ROC)...........................................................................10
2. Third Eyesight.....................................................................................................12
3. Apparel Export Promotions Council (AEPC).....................................................15
4. National Institute of Fashion Technology (NIFT)..............................................18
5. Northern India Textile Research Association (NITRA).....................................21
Chapter Three: Company Profiles
1. Modelama Exports Ltd.
I. Contact Information.........................................................................................24
II. Brief History ....................................................................................................25
III. Basic Profile.....................................................................................................25
IV. Financials.........................................................................................................27
V. Brand Information............................................................................................28
VI. Infrastructure....................................................................................................29
VII. Working Conditions.........................................................................................31
VIII. Human Resource Policies ................................................................................32
IX. Business Bottlenecks .......................................................................................35
X. Industry Comments..........................................................................................35
XI. Personal Experience.........................................................................................36
2. Shahi Exports Pvt. Ltd.
II. Brief History ....................................................................................................37
IV. Financials.........................................................................................................39
3. Jyoti Apparels
II. Brief History ....................................................................................................49
IV. Financials.........................................................................................................51

4. Company G of R Group of Companies
II. Brief History ....................................................................................................60
IV. Financials.........................................................................................................62
5. Pearl Global Ltd.
II. Brief History ....................................................................................................68
IV. Financials.........................................................................................................70
6. Orient Craft Ltd.
II. Brief History ....................................................................................................80
IV. Financials.........................................................................................................83

CHAPTER ONE
INTRODUCTION
The identification and profiling of top tier Indian garment exporters was undertaken for
the following purposes:
1) To identify common Human Resource strategies used to suppress union
organizing in the export garment sector.
2) To identify correlations between labor conditions and businesses characteristics.
3) To develop corporate research strategies specific to the Delhi, India context.
Five companies (Modelama Exports Ltd., Shahi Exports Pvt. Ltd., Pearl Global Ltd.,
Company G of Group R, Orient Crafts Ltd.) were identified using “Mapping First Tier
Suppliers in Garment Industry in Delhi,” a CEC report submitted by G. Manicandan. The
sixth company was identified by the researcher through an interview with a representative
of the Indian Apparel Export Promotions Council (AEPC).
Several other agencies that are major players in the export garment industry were
identified and profiled by the researcher. These are the Northern India Textile Research
Association (NITRA, linked to the Ministry of Textiles, Government of India), the
Apparel Export Promotions Council (AEPC), the National Institute of Fashion
Technology (NIFT, linked to the Ministry of Textiles), the Registrar of Companies
(ROC, Ministry of Textiles), and Third Eyesight (an industry consulting agency).
Methodology
Preliminary research was conducted on the internet. Four of the six companies profiled
and all of the agencies have individual websites. Online searches yielded some kind of
press release or interview for each entity except for Jyoti Apparels. Public limited
companies like Pearl Global Ltd. display their financial information on the company
website, others self-report to financial databases, and others do not disclose financial
information beyond approximations of annual turnover and production capacity. Contact
information was available on websites, although some were out of date.
A management survey was developed using the framework of surveys used in other
geographic contexts and updated on the basis of preliminary interviews. Managers at six
companies and four agencies gave interviews.
Interviews were obtained in a variety of ways. Obtaining the phone number from the
agency website and directly calling was the simplest way of setting up interviews. E-mail
was also used to a large extent to set up meetings, though it proved best to limit the
amount of e-mail communication. Asking a question via e-mail often yielded claims of
confidentiality, while asking the same question in person would yield a response. It is
advisable not to send questions via e-mail. If an interview cannot be conducted in person,
an interview by telephone would be far more likely to be successful than an information

request by e-mail would. However, no telephone interviews were conducted in this
survey; all interviews were in person.
The agencies profiled were primarily interviewed before the export houses, and used to
establish industry contacts. The AEPC was instrumental in identifying Jyoti Apparels as a
top tier supplier, and NIFT gave updated contact information for Shahi Exports Pvt. Ltd.
and Orient Craft Ltd., without which interviews would not have been possible.
Managers were surprisingly open in some cases, going as far as to hand over Standard
Operating Procedures, industrial accidents record, or productivity schemes, while others
would refuse to state the number of workers in the manufacturing unit. The attitude and
openness of those interviewed are subjectively recorded in the individual profiles.
Aggressiveness both in pursuing interviews (which could take several phone calls and e-
mails before contacts could be made) and in asking questions during the e-mail was not
seen as rude as it would in a U.S. context and was integral in order to obtain information.
An interview with an anonymous manager produced the following conversation, which
typifies management attitude both towards women and unions:
Limitations
Time constraints limited the consistency and thoroughness of company information, as it
was not possible in many cases to conduct follow-up visits. Information on these
companies was obtained primarily from top-down management sources, and as such may
be misleading as to actual conditions. The purpose of this research was to obtain
information about companies from a management perspective, however, even though
such a one-sided perspective may not reflect the reality of the situation. Furthermore,
time constraints would not permit cross-checking all information with workers and
officers at each company.
Questionnaire Used by the Researcher
The following questionnaire was handwritten in shorthand and brought to the scheduled
interviews as notes. It was not e-mailed to any of the managers, and one experience e-
Researcher: Why are your workers mostly female? Are there significant differences in
productivity?
Manager: No, no significant differences in productivity. Just, men together tend to
form groups and lobbies because they have spare time.
Researcher: I don’t understand. What groups?
Manager: Oh, they get involved in politics—(phone call)
Researcher: What were you saying about the worker groups?
Manager: No—that’s not—don’t quote that. I’ll tell you, but off the record. Women
are easier to handle. They’re more docile; easier to control. Also, ladies are more
focused on work.
Researcher: Did you have problems with employing males in the past?
Manager: No—no, I don’t think they ever employed males…

mailing questions proved fruitless in gathering information. The survey questions were
divided into sections according to the position of the respondent, as there are some
questions that an HR manager would know more than a Merchandising Agent. However,
if only a higher level manager could be reached, they often had information regarding
each of these areas. The questionnaire was used only as a guide in the interviews as a
reminder of what kind of information was needed, since a conversational approach
proved to yield the most information.
Name, Designation, and Responsibilities of Respondent:
Number of Years in the Company:
General Upper Management
Do you have a brochure saying what products, etc? What products do you manufacture?
How many factory locations does the company have? Size and scale? Addresses?
Does it have objectives on which it was founded? Articles and Memorandum of
Association (Objectives, Ownership of Company- Incorporation of Company) What is the
shareholding and ownership makeup of the company? What plans for expansion?
Do they cater to domestic market or only export? What share of
turnover/sales/production is export?
Markets—who, where, U.S., EU? Major foreign brands that the company supplies to:
length of relationship, total sales, vol of product, how fast company delivers products to
brand
Kinds of buyers—importers, specialty (GAP), discount retailers (Wal-Mart), dpt stores
(Belks)
What is the average price that you get per piece of garment supplied? Do you know the
average retail price at the point of sale? By item? At what point of delivery do you get the
price (FOB – freight on board, Landed Cost)? different practice of brands and retail
clients?
How does the company get contracts with foreign vendors?
How are prices negotiated with a foreign brand?
Do you have design department? Where is it located? Give details. What kind of input—
CMT, no input--or more capable, get order, help design, sourcing, CMT, package,
deliver?
Does the company ever have problems with contracts and/or steady orders? (if possible,
DSP questions, I’ve heard of collegiate licensing that would provide steady orders from
major brands at higher prices, if such a program were introduced would be willing to
participate if increase wages and committed to labor rights and worker representation?)
Problems with seasonality? Manufacture winter clothes?
How have vendors changed post-MFA? Have you taken price cuts? Which products?
Larger volumes? Different buyers? Deepened relationship? Middlemen?
Who are the company’s competitors?
Are subcontractors involved and if so at what stages? Which factories/companies? What
are the size and scale of these operations? Has this changed post-quota phase out?
What effect does the company believe the quota phase-out will have on turnover and the
industry in general?

Have they used outside agencies in developing any part of their strategies? Part of
AEPC, NITRA, or do they use agencies like Third Eyesight for technology and HR
development?
How has AEPC or NITRA or NIFT helped them? In what capacity?
What are two or three main things holding business back? What are you doing to solve
this?
How has the central and state government helped the company’s smooth functioning? Or
not?
Labor laws, infrastructure How do you manage being so large?
Market Related information:
Is financial data/ annual reports for the past five years available? Can you give a copy of
the latest annual/financial report for the company?
Current figures for the company: Total sales, total value of exports, material cost, labor
cost, overhead, subcontracting, profit margin
HR Manager
What are the normal timings of work at the factory? What are the periods of break?
Do you use labor contractors? Temporary employees? What benefits are different?
How do you train your workers? At what level? How long does the training last?
Give figures for the total number of employees and their average wages per month by
category and gender, tailors (skilled, semi skilled, unskilled), cutters, washers, pressmen,
finishers, checkers, helpers, trainees, supervisors, etc.
How many women, men, average age of employees, how long they have stayed in
company
Are workers in any way involved in wage negotiation or target setting?
Target setting-prod planning mtgs?
How many years of experience do the workers need to have in ordered to be hired at your
company?
What is the usual turnover of employees? How do you fill vacancies? Do you use
recruiting agencies?
Are all employees in the company given a letter of contract? If yes, can you give a sample
of the contract letter?
Is there a procedure for workers to complain about supervisors/management?
Are there programs or committees to minimize conflict and improve morale of workers?
i.e. Shopfloor Committee, Productivity Committee, Grievance Committee, Sexual
Harassment Committee, Quality Circle? If yes, who are the members and how are cases
handled? Give details. Have you seen a benefit in productivity since implementation of
program?
Are there joint worker-manager forums in your organization? If yes, what do these
forums do?
Get any documents willing to give at any point, standing orders, codes of conduct, what
is displayed to workers on details of employment, etc.
Have there been any attempts at unionization in the past? What is the company’s attitude
toward unionization?

Is there a personnel ‘code of conduct’? Is this a company policy or vendor policy? How
are these communicated to workers?
What employers are covered by: (i) ESI (Employee State Insurance) (ii) PF (Provident
Fund) (iii) Gratuity (iv) Maternity benefits (specify)
What are the details of employment that are displayed / notified to workers? (i) minimum
wage (ii) ESI/PF/Gratuity?
What is the average overtime payment to all employees? (i) overtime per month (ii)
overtime as a percentage of total wages (iii) rate of overtime payment
Ask about industrial accidents, if there is a doctor available, how often, rotate between
factories, what is the most common injury, what kinds of safety equipment
What is your approach in HR and Productivity/Efficiency? (Get policy document)
Do you involve outside agencies in your HR strategies?
Do you have common policies across your plants?
What are the typical causes of punishment of employees? What are the types of
punishment given? (wage cuts/extra work/asked to go home?)
Is there a procedure followed for dismissal of employees? Who initiates the procedure?
Is the employee given a hearing? Give details?
Do you have a legal officer in the company? Do you have an Industrial Relations policy?
(any written documents?)
What are two or three main things holding business back? production, labor situation,
training , quality control, etc. What are you doing to solve this?
HR/Production Manager:
Get any documents willing to give on productivity schemes, time-study worksheets,
productivity numbers, structure of lines, how many supervisors, etc
What is your approach in HR and Productivity/Efficiency? (Get policy document)
Could you give me a sense of the floor layout of a typical factory; what kind of
technology and planning has gone into the factories?
What are the different departments? (Floor chart)
Department # Workers # Men # Women # Machines
What are parts of a Line?
Is it an assembly line?
How much time does an item take from the beginning to the end of a line?
How many supervisors are there on the Line?
Is there a productivity scheme in your company? If yes, when was it introduced? What
categories of workers are covered? Are workers in any way involved in target setting?
Prod planning?
How much time does a worker take to achieve the desired productivity?
What kinds of productivity schemes? Teams? Line supervisors? How come up with time
studies? How conveyed?
What have been the benefits from the productivity scheme in terms of (i) increase in
productivity
(ii) reductions in waste (iii) any others?
Does the productivity scheme give incentives to workers? If yes, give details based on
category, average incentive, and maximum incentive.
How make workers more productive?

What are the typical causes of punishment of employees? What are the types of
punishment given? (wage cuts/extra work/asked to go home?)
Is there a procedure followed for dismissal of employees? Who initiates the procedure?
Is the employee given a hearing? Give details?
Has the company ever consulted industrial engineers to design the factory?
What was productivity output before and after the consultation?
What are the quality check points that the buyer requires?
Does the company management have other quality checks?
How have they used technology and state of the art equipment to improve quality?
What are two or three main things holding business back? production, labor situation,
training, quality control, etc. What are you doing to solve this?
Types of Sources (other than management interviews)
To obtain much of the initial company information, the researcher performed internet
searches for the company names, and several common business periodicals showed up
several times including:
Apparel Resources http://www.apparelresources.com
http://www.ittimes.co.kr/
The Economic Times http://economictimes.indiatimes.com/
http://www.sify.com
http://www.businessworldindia.com/
http://www.indeconomist.com/
The Hindu Business Line Internet Edition, Financial Daily http://www.blonnet.com/
Most of the companies profiled had company websites, except for Jyoti Apparels and
Orient Craft. Once interviewed, the companies typically gave company profiles that they
use for potential buyers, which contain information about the composition of the
company, the types of clothing it manufactures, production capacity, turnover, and major
clients. The agencies profiled, especially the AEPC and NIFT, were vital in obtaining
information that would lead to interviews, identification of major players, and important
industry resources. Third Eyesight has links to industry-related articles at
http://www.3isite.com/index.htm.
Although the researcher was not able to research the following sources further, some
were featured at an international garment fair and others are commonly used as industry
resources for financials: CMAI (www.cmai.info, cmai@hathway.com), EBSCO
CRIS, INFAC (intranet and internet), INSIGHT, CMIE, RMS, IAS, INDIASTAT, IRA.
Information In Company Profiles
Contact information includes addresses of known production sites, contact
persons, website, and e-mail.
Brief history includes relevant information regarding the establishment and
incorporation of the company.
Basic profile includes the legal composition of the company, export oriented unit
information, the breakup of exports and imports of the company (100% exports for all the
companies profiled in this report), the product mix, clients, and awards of the company.

Financials section includes the turnover and whatever other financial information
could be obtained on the company.
Brand information section includes major clients, length of relationship and
percentage of turnover, direct or buying agency clients, and unit prices.
Infrastructure section includes subcontracting information, the type of
production system (all assembly line units), production capacity, the design/sampling
department, quality control, specific departmental information, and productivity schemes.
Working conditions section includes timings of work, wages, wage-setting
procedures, benefits, overtime information, and labor turnover.
Human Resource policies section includes management structure, worker
training information, recruitment policy, dismissal procedure, union information, worker
committee information, grievance policy procedure, corporate social responsibility
schemes, codes of conduct, worker medical care information, and security system
information.
Business bottlenecks section includes whatever setbacks or problems that
managers perceive as holding back business.
Industry comments section includes strategy, predictions, and other relevant
information regarding the growth of the company, its views on the industry as a whole,
strategies for expansion, etc.
Personal experience section includes miscellaneous description regarding the
researcher’s views of the company and its managers and the ability to get an interview.

CHAPTER TWO
AGENCY PROFILES
1. REGISTRAR OF COMPANIES (ROC)
According to an interview with the Company Secretary of Pearl Global Ltd., in order for
a company to be registered with the ROC, they must submit several forms at
incorporation and annually. Such forms include:
Form 1, the compliance of companies act;
Form 18, the address of the registered office and the locations of the business;
Form 32, the details of the board of directors/management structure;
Form 29 for Pearl Global makes it a public limited company;
Form 20 gets the Director a Director’s Identification number (the number used on
the mca.gov website to access the public disclosure documents).The financials publicly
available include the annual return and balance (for all companies). Since Pearl Global is
a public limited company, the profit and loss are also publicly available, which is not true
for privately owned companies. Companies are required to register new events such as a
change of directors with the ROC.
The Registrar of Companies is a division of the Indian government’s Ministry of
Textiles.
Website of the Ministry of Company Affairs: http://www.mca.gov.in
According to the Ministry of Company Affairs website: Registrars of Companies
(ROC) appointed under Section 609 of the Companies Act covering the various States
and Union: Territories are vested with the primary duty of registering companies
floated in the respective states and the Union Territories and ensuring that such
companies comply with statutory requirements under the Act. These offices function as
registry of records, relating to the companies registered with them, which are
available for inspection by members of public on payment of the prescribed fee. The
Central Government exercises administrative control over these offices through the
respective Regional Directors.
The addresses of each state’s ROC as of 2003 can be found at
http://dca.nic.in/ROC_2003.htm :
Delhi & Haryana Regional Director: Dr. Navrang Saini
Addresses: B-Block Paryavaran Bhawan, CGO Complex, Lodhi Road, New Delhi
110003
Phone: 011-24362708 Fax: 011-24364570 E-Mail: rocdel.sb@sb.nic.in
Nehru Stadium, New Delhi – 110003 E-Mail: rocjln.sb@sb.nic.in
However, the office at Nehru Stadium closed down earlier in the year.

The ROC in Delhi is in a process of transitioning to an electronic format of filekeeping.
As such, the process of obtaining public documents, such as financial information and
company Articles and Memorandum of Association (objectives, etc. of a newly
incorporated company detailing the scope of its operations), was difficult and did not
yield a lot of useful information. Documents are publicly available after submitting a
form requesting a release of information along with a small fee for each company. Not
only were entire company files missing, but several did not have up-to-date financial or
structural information. Furthermore, photocopying the documents in the file is not
permitted unless a fee for a legal copy is paid. Information must be copied into a
notebook by pencil (pens are not allowed). The researcher attempted to take notes by
laptop, and though there is no formalized rule against this, it was not permitted either.

2. THIRD EYESIGHT (INDUSTRY CONSULTING AGENCY)
Contact person: Mr. Devangshu Dutta, Founder and Director of Third Eyesight
A-847, 2nd Floor, Sushant Lok-I, Gurgaon - 122 002 INDIA
Tel: +91 (124) 4112493, 4112494, 4112495
Fax: +91 (124) 2577586 Cell: +91 98111 03494
Email: devangshu.dutta@3isite.com
Website: www.3isite.com
Third Eyesight's Experience Profile: (from their promotional materials)
Third Eyesight was founded in late-2003 by Devangshu Dutta who has worked with
retailers and manufacturers from across the world in a variety of consumer products
sectors, over the last 16 years. During his career Devangshu has performed the roles of
an entrepreneur, manager, advisor, trainer and teacher. Devangshu began his career
with the then-leading Indian national retail chain in buying & merchandising and in
store operations. He subsequently worked with an international retailer's joint-venture in
India, in marketing and distribution, as part of the team that launched the JV. He then
joined a start-up consulting firm and was instrumental during its growth into a multi-
national consulting firm's joint venture in India. He was also based in the European
practice of this multi-national consulting firm, and returned to India to his position as
General Manager of the Indian business. Thereafter, he co-founded a fashion sourcing
company in which he remains a shareholder.
Third Eyesight's project teams consist of professionals who have hands-on experience in
various aspects of retail and consumer products businesses. Third Eyesight and its team
of associates & professionals have worked on a variety of business strategy, new business
start-up and operations projects with Indian and international clients. The following are
brief descriptions of some of the projects on which Third Eyesight's professionals have
worked.
* International multi-billion dollar apparel brand - development of India strategy and
preliminary business plan including market analysis, competitive and regulatory
information, and product analysis.
* One of the largest global home products retailers - Strategic assessment of India –
insights for a global senior management team to gain a realistic picture of the
opportunities and the challenges in India.
* Diversified Indian consumer and industrial products conglomerate - Carrying out
sectoral market studies in retail, assistance in formulating strategy and developing
partnerships with International retailers and brands, including fashion, food & grocery,
home, health, dining etc.
* Global fibre and chemicals company - strategic inputs for Asia-Pacific top
management team to identify emerging opportunities in the Indian textile supply chain
* Leading UK Retailer - Assistance in development of global sourcing strategy and
action plan; Benchmarking against global supply chain and product development best
practices; Support in implementing changes in sourcing strategy and organisation;
assistance in assessment of Indian supply base

* Multi-billion dollar Indian consumer goods conglomerate - Assistance in formulating
strategy and developing business with global customers for exports.
* One of the largest Indian textile and garment companies - Comprehensive
comparative study of 7 cities in India and outside to choose location of new garment
manufacturing plant
* Leading Turkish supplier - Formulating strategy and assistance in strategic alliance
proposal to key European customer.
* Pioneer luxury brand house in India - Business planning for new brand acquisition;
Business strategy and plan for current business, and assistance in seeking new capital
infusion.
* Indian subsidiary of one of the largest sports apparel and footwear brands – Design,
development and delivery of sales & marketing collateral for three consecutive seasons.
Content of Interview (5 July 2006) with Director of Third Eyesight:
Asked about study, gave contact information for the National Institute of Fashion
Technology in Hauz-Khas. (Website: niftindia.org) Advised researcher to contact faculty
of the management studies department, who could then direct me to industry
management: Dr. D.K. Batra, Mr. Pradeep Joshi, Mr. Sibichan Matthew. Directed
researcher to online industry magazine resource (Website: apparelresources.org). Also
told the researcher to contact faculty of Pearl Academy of Fashion, who would be able to
help schedule company interviews.
Mentioned another apparent Tier 1 (said they are large and source directly to MNCs),
Matrix. The name is on the WRC disclosure list.
Gave a brief background about salient law regulating the textile and garment industry:
The tax laws are such that if you subcontract work but sell to the domestic market, you
need a separate registration and thus it is easier to simply export (used to be tax-free).
Gave history of market structure in India. Initially, it was a licensed economy in which
you needed to get government clearance to manufacture in specific capacities. The
government thus limited how much you could produce under the reasoning that over-
capacity would lead to inefficient use of capita. In the early 90s, this model was phased
out. The small-scale reservation system, which continues to regulate knit-fabrics, reserves
certain sectors for small units, and you cannot have large units.
The investment cap was very low, and the result of this was that a successful company
was prevented from expansion. This is partially why many of the current successful
companies (such as Richa Global) are split up into many different companies. Much of
the fragmentation of companies was really only on paper. The other reasons for company
fragmentation are the nature of quota system and labor laws. The quota system obliged
companies to set up under different names.
According to him, labor laws also limited the ability of companies to expand, as you
needed approval from the state government if you were operating a place of business with
more than a hundred workers. Since the garment industry is extremely labor intensive,

one hundred workers is nothing. He expressed hope that soon the labor laws would relax
some to reflect changing needs of business. He stated that “the inconvenience of a labor
inspector” pestering and harassing company management was a minor price to pay for
business expansion.
From 2001-2004, he said that Indian companies were extremely uncertain about the
effects of the MFA phase-out, worrying that Indian business could not compete with
China. Because of this, investment in the industry slowed down. In 2004, he said, this
changed somewhat, as the companies began to listen to the needs of buyers and in 2005,
as it was clear that Indian businesses were gaining from the phase-out and smaller
countries like Bangladesh were losing instead, the investment returned. Although he
expressed the belief that a market economy cannot compete with a controlled economy
like China in that the Chinese government built factories and infrastructure, then
privatized factories, so all the businesses had to pay was labor and overhead, he made it
clear that somehow they were competing because of their “ability to develop and deliver
product.” Furthermore, the quotas had restrained India far more than China (showed a
graph from a U.S. economic source, couldn’t see name).
He began to talk about sourcing, saying that the industry had often talked of diversifying,
that they were too “over-exposed in China,” however that had mostly been talk and no
action. He then mentioned that “strategic sourcing” would be much more beneficial to the
market, whereby long-term relationships are cultivated. He began to describe the
different ways of sourcing, how the current transactional model is very inefficient insofar
as buyer-supplier cooperation goes. The MNC gives product specs, gets quotes from
suppliers, the supplier makes the product, ships a sample, the MNC may like it or require
additional changes, the product is re-done, etc., and rather than cultivate a relationship in
which the supplier provides input and designs according to a long-standing relationship,
money is instead wasted on an inefficient process. However, strategic sourcing is
dramatically different from the current widespread transaction model, and as such is seen
as a big risk and many are reluctant to actually work on establishing these relationships,
since vendors and suppliers both may have had bad business experiences when
attempting to do the same. The current model has self-contained worlds instead of
cooperation, wherein the buyer, for example, doesn’t communicate with the designer.
From a piecemeal view, it would increase unit prices, but in the strategic long-run, total
costs would go down because the current transactional model wastes a lot of time,
material, effort, and money (wastes that would not be eliminated by greater cooperation,
but would be greatly minimized).
He mentioned that Delhi (mostly womenswear) is only one side of the big picture, and
that Chennai (mostly menswear), Bangalore (roughly equal, but more menswear), and
Tirupur (mostly jersey knits) all have different cultures. He said that Delhi is doing
extremely well in terms of business and is the largest in terms of exports, but that the
outlook of the management may be more pessimistic than Tirupur, which has worse
infrastructure but is nevertheless optimistic about business.

3. APPAREL EXPORT PROMOTIONS COUNCIL (AEPC)
Office: Apparel House, Sector 44, Institutional Area, Gurgaon 122003
Contact Person:
Mr. KK Jalan, Secretary General of AEPC
Mobile: 98-9912-4555
Website: http://www.aepcindia.com/
The AEPC was originally incorporated in 1978 as the Apparels Export Promotion
Council and re-incorporated in 1984 as the Apparel Export Promotion Council.
According to the Articles and Memorandum of Association:
Up till now Cotton Textiles Export Promotion Council was handling the export
promotion work of garments, but now as the garment industry has reached a stature and
maturity and has achieved the target of 250 crores, the leaders of the garment industry
thought that it would be in the best interests of the garment industry to have a separate
export promotion council. Two leading organisations of readymade garments, Clothing
Manufacturers Association of India, Bombay and Garments Exporters Association, New
Delhi took a lead in this matter and formed a special ad-hoc committee of the following
Members: Mr. P.N. Amersey (M/s Milton’s Ltd., Bombay) President, Clothing Mfrs.
Assan. of India; Mr. Vijay Mehta (M/s Intercraft Pvt. Ltd., New Delhi) President,
Garment Exporters Association; Mr. B.P. Singh (M/s Singh Export Corporation, New
Delhi) Ex-president, Garments Exporters Association; Smt. Premila Wagle (M/s Paville
Fashions Pvt. Ltd., Bombay) Vice-President, Clothing Mfrs. Assn. of India; Mr. S.L. Shah
(M/s Hiralal Gulabchand, Bombay) Hon. Gen. Secretary, Clothing Mfrs. Assn. of India;
Mr. N.F. Mogrelia (M/s Zoro Garments Pvt. Ltd., Madras); Mr. N.K. Banthia (M/s
Magnum Enterprises, Calcutta); Mr. B. Ramadorai (Chief Executive, M/s Handloom and
Handicrafts Export Corporation, New Delhi).
The main objectives of the AEPC are as follows:
(1) To promote, advance, increase, develop export of all types of readymade
garments, excluding, woollen knitwear and garments of leather, jute and hemp.
(2) To undertake all export promotion measures, particularly to undertake market
research, quota distribution and allocation, to find out the tariff and other restrictive
practices of importing countries, to find out the product range and export prices of
garments of other countries, to develop new designs and patterns of garments, to
undertake marketing in individual foreign markets, to send trade delegations and missions
to foreign countries as well as to survey export potential of readymade garments from the
country.
(3) To appoint representative, agents or correspondents in foreign markets for the
purpose of continuously and regularly reporting the markets prices, market preferences
and latest fashions and designs prevalent in the foreign countries.
(4) To conduct propaganda and publicity regularly and continuously so as to bring
to the notice of the importers and the public in foreign countries the advantages of trade
and commerce with India and to create a liking for the various types of garments markets

for the purpose of continuously and regularly reporting to manufacturers, traders and
exporters of garments.
(5) To assist members, especially, in the Small Scale Sector by giving assistance
in the matter of understanding and implementation of the drawback, rules and procedures,
import licence facilities provided and how to apply for the facilities.
(6) To establish design centres, to evolve improved design and patterns and
garments suitable for export, to improve the qualities and standards of the fabrics and
garments by importing technical know how, to encourage export production of quality
garments and to undertake necessary research in fashions, designs and techniques and to
encourage manufacture of garments for exports.
(7) To undertake training of workers and technical personnel, to improve the skill
of workers engaged in garment manufacturing in India and to assist in the technological
base of the garment industry.
(8) To obtain from members of the Council and to prepare for the Council as a
whole, action plans for promotion of exports, development of export markets, generation
of production for exports, setting of export targets generally and in relation to specific
countries and commodities on an annual basis and for such medium and longer terms as
may be considered desirable and to ensure/undertake execution of such plans.
The complete list of the AEPC’s objectives can be found on the company’s
website in the Articles and Memorandum of Association (link from main page), as well
as the names, address, and description of subscribers.
Content of interview (7 July 2006) with the Secretary General of the AEPC:
The main issues in the garment industry are labor and infrastructure. AEPC focuses on
three things:
• marketing help,
• lobbying to government to change laws regarding labor and infrastructure
(and whatever other business bottlenecks there are),
• help with training and productivity (14 training institutes), and
• raw material supply (both indigenous and imported).
He stated that over the industry as a whole, unit prices have remained stable pre and post
quota phase-out. He said the three biggest centers for garment production were
• firstly Delhi, its strengths being better infrastructure, NCR region, and its
specialization in better embroidery and the “India look” (ethnicwear heavy
with embellishments and more complex work);
• secondly Bangalore, its strengths being higher levels of worker
productivity, and lastly Tirupur, specializing in knitwear.
He stated that the government needs to increase labor flexibility, so that workers can be
more easily fired and hired, otherwise productivity will remain stagnant and labor costs
will remain high. A specific AEPC goal is to get the government to change the law that
states that workers are permanent employees after 100 days, to 200 days, so that
businesses who do not get orders during the winter are not hurt by the cost of labor. For
three months of the year, he stated, garment businesses do not have orders.

He listed the top ten Indian garment factories as
• Shahi Exports (Delhi),
• Richa Global (Delhi),
• Golkadas Images (Bangalore),
• Golkadas Exports (Bangalore),
• Creative Group (Mumbai),
• Texports (Mumbai),
• SPL Industries (Delhi),
• Modelama (Delhi),
• Centwin Group (Tirupur), and
• the Eastmen Group (Tirupur).
These businesses have succeeded through a number of different strategies, with a
common thread of individual attention to quality control and productivity by hiring
consultants and building better facilities.
He mentioned several notable resources, including
• an HR training institute-KSA Technopack,
• a foreign consultant agency Method Workshop (main consultant Roger Thomas),
• Gurgi (“biggest industry consultant”—saw this name in the fabric stores in Jyoti
Apparels), and
• the Cotton Textile Export Promotion Council.
The AEPC did not have company specific financial data, as it is self-reported. The
researcher purchased the newest book of statistics on industry level data that the AEPC
had (2003) and a directory of garment exporters.

4. NATIONAL INSTITUTE OF FASHION TECHNOLOGY (NIFT)
Ministry of Textiles, Government of India
Website: http://www.niftindia.com/iftf.htm
Address: NIFT Campus, Hauz Khas Near Gulmohar Park, New Delhi-110 016, India
Telephone: 26850484, 26964771, 26965059, 26965080, Extn:306
Contact Person: Professor Rajesh Bheda, PhD., Chairperson, Department of Fashion
Technology
Telephone: 26850484, 26964771, 26965059, 26965080, Extn:306
Fax: 91-11-26851198
Mobile: 9810154829
E-mail: rajeshbheda@gmail.com, rajeshbheda@niftindia.com
NIFT was set up under the Ministry of Textiles in 1986. According to its CE (Continuing
Education) Prospectus 2006-07:
NIFT provides quality fashion-education to industry experts, professionals, practitioners,
and entry-level candidates in the form of Continued Education Programmes. Each of the
seven NIFT Centers offers a spectrum of specialized short-term courses that address the
dynamics and niche needs of the fashion industry and open windows of opportunity to
interested candidates. In addition to classroom learning, these courses offer a unique
opportunity to participate in the lively academic environment of NIFT, and avail of
facilities like laboratories with state-of-the-art equipment, Resource Centres, and diverse
faculty expertise. The thrust of CE Programmes is on integrating theory and practicals
with industry best practices and reciprocal professional interaction in a consolidated
time-bound format, leading to upgradation of skills and knowledge, enhancement of
critical abilities, advancement of careers, and the evolution of new professionals. (Gauri
Kumar, Director General of NIFT)
The Institute: Today, NIFT is acknowledged as the premier institute of fashion design,
management and technology across the globe. NIFT has set academic standards and
excelled in thought leadership by providing a pool of creative genius and technical
competence to the fashion industry nationally as well as globally. The Institute has
pioneered the evolution of fashion business education across the country through a
network of seven centres at New Delhi, Bangalore, Chennai, Gandhinagar (Sub-Centre:
Surat), Hyderabad, Kolkata and Mumbai. The centres are professionally managed
platforms of the world’s finest design expertise, management practices and
manufacturing technologies. They offer a learning environment that encourages
innovation, creativity, and excellence.
Continuing Education (CE) Programmes: National Institute of Fashion Technology,
besides conducting regular professional undergraduate and postgraduate programmes in
Design, Management and Technology, also offers short duration part time courses under
Continuing Education (CE). NIFT has crafted a range of Continuing Education
Programmes, which have been developed in consultation with reputed academicians
[sic] and industry practitioners. These programmes reflect the requirements and

concerns of the industry and have been carefully planned to spur professional growth,
relevant to individuals at different stages of their careers, and also to those aspiring to
join the industry. The CE Certificate Programmes are aimed at complementing the
practical knowledge of the industry professionals with formal technical education in their
respective areas of work. The flexible schedule enables the participants to pursue the
programme without interrupting their professional activities. With focus on interactive
learning, the programmes provide a congenial environment that integrates theory with
practice. The participants receive a NIFT certificate on successful completion of the
programme.
The library at the NIFT campus is open to anyone, though you cannot take bags inside
the doors or check out books. However, it is a useful resource in identifying the types of
materials used in classes and to train managers and HR personnel—one book on HR
management that the researcher later purchased had a lengthy passage on labor unions
and how to use HR strategies to discourage their formation.
Content of interview (20 July 2006) with Professor Bheda:
Professor Bheda has been with NIFT for 16 years. He teaches classes in quality
management, productivity (how to perform time studies), corporate social responsibility,
and a global overview of the garment industry.
The main characteristics of successful firms include:
• recognizing what customers are looking for,
• better quality product and service,
• managing their supply chain better,
• offering shorter lead times,
• design development,
• higher productivity
• use the help of consultants,
• BPR manufacturing,
• have more highly trained workforce, and
• hire or train industrial engineers.
The average Indian garment factory has 100% potential in physical labor productivity,
and they are making efforts to reach good productivity, with production planning and
scheduling, performance-based rewards system. Most common is line supervision,
training managers, operators, methods monitored, quality improvement program, trying
to get workers’ involvement. If companies put efforts into enacting these measures, there
could be a 50% improvement in quality.
Post-MFA trends have been a consolidation of supply chain and capacities;
manufacturers consolidating capacities, suppliers reducing subcontracting, buyers
reducing number of suppliers as well as brands. Companies are trying to move up the
value ladder as product development and design are becoming more important. U.S. and
EU have always been strong markets in India, probably average 70% of India’s market,
as there has not much shift in markets. Unit prices are down, demand is up, cost is up,

there is an erosion of the bottom line and companies find it difficult to survive and
improve working conditions.
Regarding corporate social responsibility, “suppliers get a feeling of being cheated,” that
retailers are paying lip service to CSR without sharing the cost burden, and are simply
passing it on to the suppliers. Retailers should start partnering with the brands and
rewarding CSR compliant suppliers. Everything in the market is transaction-based, driven
by price and the customer can walk away at any point, so suppliers feel they are not
committed. Social programs are a long-term investment, and many cannot afford them
because there is typically no financial payback, so some firms are investing in CSR to the
extent they can afford. He does not see a correlation between turnover and CSR
programs: “ultimately it comes from within, from principles, not because the buyer says
the firm has to do it.”
The researcher mentioned the United Students Against Sweatshops-proposed Designated
Suppliers program and if suppliers would be interested in such a proposal and he said
absolutely, something like it has been discussed, and as long as it is ensured that the
rewards system cost comes down to the factory floor, it would be good to invest in social
improvement program. However, it would have to be meticulously and carefully
implemented.
He gave a contact person to interview from Shahi Exports and up-to-date contact
information number for Orient Craft. The day of the interview was the final day of the
Indian International Garment Fair (IIGF: www.indianapparelfair.com, 38th
annual:
www.indiaapparelfair.com), the 37th
annual garment fair with 393 exporters/exhibitors at
Pragati Maidan. The core group of organizers include Vijay Mathur, the AEPC Director
of Export Promotions (interviewed him after K.K. Agarwal), Vijay Agarwal (Chairman
of AEPC, Mumbai), H.K.L. Magu (Chairman of Jyoti Apparels), K.K. Jalan. The
researcher obtained a buyer ID and toured the grounds. None of the firms were top ten
exporters or easily recognizable; it seemed to be a showcase for smaller firms to vie for
new buyers and international exposure. The award winners for their showcases
(announced the previous day, so the researcher asked IIGF workers) were 1) Intercraft
(New Delhi), 2) Shilpayan Craft (Jaipur) 3) Another firm from Jaipur.

5. NORTHERN INDIA TEXTILE RESEARCH ASSOCIATION (NITRA)
NITRA, Sector-23, Raj Nagar, Ghaziabad (UP) 201 002
Website: http://nitratextile.org/
Contact person: Dr. J. V. Rao, Chairman of NITRA, P.S. 0120 278-3638
NITRA was established jointly by the industry and the Indian government (Ministry of
Textiles) in 1975 with the objective “to carry out scientific research in the field of textile
as well as to promote and foster scientific research studies for the extension of knowledge
related to or connected with textile industry” (NITRA’s website). It is the only ISO
9001:2000 accredited textile research organization in India. It is linked to the Ministry of
Textiles and is recognized by the Department of Scientific and Industrial Research (both
government entities).
NITRA’s Experience in Environment Field:
NITRA’s Environmental Division has made headway…[in] solving the industrial
problems related to environment through R & D based Consultancy, Publications, and
Seminars/ Conferences/ Training programs…NITRA has carved a niche and occupied
leadership in Package Design Consultancy for effluent treatment and water recovery.
Several prestigious textile units and multinationals are already within its consultancy
network. The Environment division has successfully executed 74 industrial projects with
effluent handling capacity of 100 m3
/day to 2000m3
/day…Environmental division has 40
publications in environment field…The division has organized several
seminars/workshops during the last one decade in the following areas for the benefit of
According to NITRA’s 2006 Prospectus:
NITRA’s Multifarious Activities
*Job oriented professional courses (full-time and distance learning) in textile,
garment, environment and allied areas.
*HRD activities through training programs, seminars, workshops, conferences
and publications.
*Customized consultancy packages for national and international clients in the
areas of Product Development, Product Diversification, Cost Reduction, Quality
Improvement, ISO-9000 Quality Management System, Pollution Control, ISO-14000
Environment Management System, Environmental Audit, Design of Effluent
Treatment Plants and Water Recovery Plants, Machine Design & Development,
Energy Conservation, Energy Audit, Manpower Planning, Process House Study,
Techno-economic Viability Study, Maintenance Management, Maintenance Audit and
a lot more.
*Quality Evaluation of textiles, chemicals, dyes, waters, effluents, leather, and
plastics.
*Research and Development projects and industry specific surveys related to
textile & garment industry.
*Need based cost effective software development.
*Collection and dissemination of data useful to the textile & garment industry.

textile and allied industries: waste management, eco-friendly textiles, effluent treatment
and water recovery plant, environmental statement…NITRA’s Environment Laboratory
is well equipped with Sophisticated Analytical instruments, which are essential to
conduct such a program…[it] is accredited/ recognized by the National Accreditation
Board for Testing and Calibration Laboratories (NABL), the Bureau of Indian Standards
(BIS), and the Haryana State Pollution Control Board (HSPCB). An in-house miniature
ETP (effluent treatment plant) of 100 Liters/hour capacity has been installed by NITRA.
A programmable ADI Bioreactor System of 3 liters capacity from Applikon Dependable
Instruments, Netherlands, has been installed for carrying out treatability studies of
biodegradation of industrial effluents through aerobic cum anaerobic route.
Library: Enriched with 5,000 books and journals, the…library [keeps students connected
with] ongoing global developments. The library also subscribes to 150 [national and
international] periodicals... [NITRA’s IT Center] has over 100 [PC’s]... NITRA has a
wide database of employers [in its placement cell, to build the careers of its students and]
monitors the current trends and requirements in the job market [by keeping in constant
touch with prospective recruiters].
According to NITRA’s website:
The Research Advisory Committee is an apex policy making committee of NITRA to
guide it in its research activities and formulating short term, mid term strategies and
policies and creating necessary infrastructure. The Committee also guides NITRA to
conduct research and provide consultancy to the industry in the areas which are more
relevant in the present context.
Content of interview (7 July 2006) with Chairman of NITRA:
Gave background on the history of the textile industry, from composite textile mills in the
50s-60s to the rise of small scale businesses/ fragmentation, fear of China post-quota, etc.
During the 60s-80s, he said that unions hurt business. He allowed that workers were
being exploited, but would not elaborate and would only refer to the intractability of trade
unions in vague terms.
Stated that the fragmentation of the business made quality control an issue. Also stated
that it cost businesses more to subcontract because they had to pay for delivery.
Complained about government infrastructure and labor laws, especially the law whereby
a worker that is employed for 100 days is considered a permanent employee.
The government is currently working on better infrastructure, better access to a supply of
power through a cluster system called Scheme for an Integrated Textile Park (SITP),
which would consolidate factories, improve infrastructure, and perhaps have relaxed
labor laws within these sites. Access to and the price of power seemed to be a big issue
for him. He believes the government should subsidize capital for Indian business like
China (mentioned something about a Technology Aggregation Fund, TAF).
NITRA helps factories with product development and various audits; quality, energy,
water, legal compliance, etc. There is a shortage of skilled garment workers, especially

machine operators at the shop floor level, so NITRA conducts training programs for
workers that last 3-6 months. They conduct in-plant training as well as distance learning
programs for middle management at NITRA itself.
When asked for company names, he mentioned Vardhmal, Arvind, Reliance, Bilwara, L
and J (seem to be mills, not garment manufacturers). NITRA’s worker training program’s
classes (this year beginning in August) cover mostly productivity issues for middle
management such as production managers and line supervisors. Students apply to the
program online and are selected on the results of aptitude examinations and interviews.
They typically have 4-5 students applying for one seat. The course coordinator is Vivek
Agarwal, a NITRA Senior Scientific Officer. Classes are full days, 10:30 am - 4:30 pm.
The researcher obtained a copy of the 2006 prospectus.

CHAPTER THREE
COMPANY PROFILES
1. MODELAMA EXPORTS LTD.
An ISO 9001:2000 certified company
The information in the following company
report was obtained from interviews with
the Director, Human Resources manager,
Merchandising Agent, the company
website, documents given by the HR and
production managers including a company
profile, business articles, ICRIER financial
data, and G. Manicandan’s CEC Report.
I. CONTACT INFORMATION
1
Contact Person
Lovleen Kumar, Director
E-mail: lovleen@modelamaexports.com, Mobile: 9810015693
Corporate Office2
Plot No. 7 & 8, Sector-5, Manesar IMT
Gurgaon -122016, Haryana, India
Tel: 91-124-2290993, 2291131
Fax: 91-124-2290864
Website: www.modelamaexports.com
E-mail: info@modelamaexport.com
Head Office Delhi Head Office Gurgaon
B-57, Okhla Industrial Area, phase -1 184, Udyog Vihar Phase -1
New Delhi -110020, India Gurgaon, Haryana, India
Tel: +91-11-26810103 Tel: +91-124-2397838-42
fax: +91-11-26817969 fax: +91-124-2397843
1
Initial information obtained from company website, and updated telephone numbers from
interview.
2
Unit visited by the researcher.

Road Map 3
Production Units4
1. 200, Phase 1 Gurgaon
4. IMT Manesar, Plot No-5, Sector-4 Gurgaon
5. Plot No. 7 & 8, Sector-5, Manesar, Gurgaon1
6. B-33, Okhla Industrial Area, phase -1 New Delhi
9. B-57, Okhla Industrial Area, phase -1
10. 184, Udyog Vihar Phase -1
II. BRIEF HISTORY
Modelama was founded in 1979 by Mr. Lalit Gulati as a family-run operation. In the first
year they exported Rs. 45 lakhs with 50 indigenous sewing machines and a workspace of
4,000 square feet. Modelama today has ten professionally run production units over
4,00,000 square feet. In 1999, Modelama professionalized its management structure and
has been consistently upgrading technology in their production facilities. Modelama
places a great emphasis on technology as the secret to its success.5
III. BASIC PROFILE
6
Legal Composition
Sole proprietorship, owner is Mr. Lalit Gulati.
3
From company website.
4
Other production sites in untranslated Hindi document.
5
From website, interview, and Pandey, Vinita. “Build Quality Rather Than Check The Quality.”
Apparel Resources.
<http://apparelresources.com/defaultnextone.asp?msg=2710&cod=newsindetail&nam=>.
6

EOU Information
Modelama Exports Ltd. is an export oriented unit registered with NEPZ, LOP NO.4-
530/2001-100% E.O.U I/6921dt28/08/01 RCMC NO. 4-530/2001-100% EOU/103 dt
14/09/2001 and also registered with the Apparel Export Promotion Council since
03/05/2001 (Registration No.AEPC/REG/MER/47569/N/2001) as a manufacturer/
exporter of readymade garments including woolen, knitwear and garments of leather,
silk, jute and hemp.
Exports/Imports
100% exports. Modelama does not manufacture for the domestic market.
Product Mix
Areas of specialization include outerwear, nightwear, ladies blouses, dresses, trousers,
shorts, skirts, kidswear, and home furnishings. Uses natural fabrics (cotton, linen, silk,
wool), synthetics (viscose, polyester, polyamide), and blends. Incorporates ethnic Indian
accents and embroidery into design samples. Launched Home Textile Collection in 1999,
offering products such as table linen, drapery, top of beds, and decorative items for
loungewear like throws, cushion covers, etc. Added outerwear to their product mix in
2001-2002, which may have contributed to minimizing seasonality issues.
Clients
USA: GAP (Banana Republic, Old Navy), Federated Stores (Macy’s), Target Stores,
Mervyns, Saks, AMC, Sears Roebuck & Co., Charming Shoppe Inc., Lane Bryant,
Kohls-Belk, Pottery Barn, William-E-Sonoma, Dayton Hudson Corporation, Chambers,
Lands End, Marshalls, Westelm, Proffitts. Tommy Hilfiger, A & F, Colt’s
Europe: Etam, Zara, Marks & Spencer, H&M, Galeries Lafeyette, Monoprix, La Halle,
Eurofiel (Women’s Secret), Villersey & Boch, Modafil
UK: Laura Ashley, Next, GUS, Freemans, Grattan.
Canada: Eatons, Hudson Bay, Marmaxx, Sears Roebuck & Co., Zellers
Australia: Country Road
Awards
Target Vendor Award of Excellence, 1992, 1993, 1999, 2000, 2001
Federated Merchandising Group Five Star Award (in Development of Federated
Department Stores Private Brands and Labels), 1998, 1999, 2000, and 2002
Associated Merchandising Corporation Outstanding Performance, 1996
Charming Shoppes Inc. Sales Growth and Profitability Vendor Award, Nov. 2000

IV. FINANCIALS
Turnover
0.5 2 3 5
15
60
30
0
10
20
30
40
50
60
70
1981 1985 1990 1995 2000 2002 2005
projected
Turnover(millionsUSD)
Other Financials7
2003 2004 2005
Total Sales 180 crores 180 cr 200 cr
% of output exported 100% 100% 100%
Profits 15% 15% 20%
Capital employed 2.5cr. 3cr. 3cr.
VA per employee Rs. 500 Rs. 500 Rs. 500
Total employment 500 500 500
Production workers 450 450 450
Proportion exported directly -- -- 60%
Proportion exported indirectly through intermediaries 40%
Misc.
No. of pieces exported to the US 150,000 per year
No. of pieces exported to EU countries 25,000
Proportion of workforce that is female 30%
Average wage for female production workers Rs. 3000/per month
Average wage for male production workers Rs. 2800/per month.
7
ICRIER Data (based on an interview at B-57 Okhla Industrial Area plant in Fall 2005)

V. BRAND INFORMATION
8
Modelama's Export Market
94%
5%
1%
U.S.A.
Europe
Others
Major Clients
Brand Origin Length of Relationship % of Sales
Federated Stores (Macy’s) USA Since 1975 30-40
Target Stores USA Since 1975 15
GAP (incl. BR and ON) 9
USA 10 years plus 10
Tommy Hilfiger USA 10 years plus --
Marks & Spencer USA 10 years plus --
A & F USA 10 years plus --
Colt’s USA 10 years plus --
Saks USA 10 years plus --
Etam Europe 5-6 years --
Zara Europe 5-6 years --
Marks & Spencer Europe 5-6 years --
H & M Europe 5-6 years --
Buying Agency or Direct
Most contracts are negotiated through buying agencies.
Average Unit Prices (per piece of garment supplied)
Unit Price Origin Product Mix Retail Markup Type10
$5-7 USD U.S. Brands Casual wear 4 to 7 times Mostly FOB
$10-16 USD European Brands High Fashion 4 to 7 times Mostly FOB
8
From interviews with the Director and Senior Merchandising Agent.
9
“GAP is sourcing worth about $1 billion from India and we are doing more than $10 million
with them.” Lalit Gulati, Modelama Chairman, quoted in 9
Pandey, Vinita. “Build Quality Rather
Than Check The Quality.” Apparel Resources.
<http://apparelresources.com/defaultnextone.asp?msg=2710&cod=newsin detail&nam=>.
10
Nearly all brands are FOB with the exception of discount retailers like Target Stores (USA). An
example given was if the retail price of a given garment manufactured for Target is $9.99, 60% of
that is Target’s profit margin per unit (PMU). The remaining $3.99 is the landed cost, which
includes not only the factory unit price but the duty cost (AMC and freight). Of that remaining
$3.99, ~$2.75 goes to Modelama. Although they get large production volumes from discount
retailers, the unit prices are markedly lower than specialty stores.

Unit Prices Since MFA Phase-out
Unit prices have gone down an estimated 7-10% due to increased global competition.
V. INFRASTRUCTURE
Subcontracting
Modelama does not appear to subcontract.11
Production System
Uses an assembly line system, which varies according to the product. The day the
researcher observed the process, they were manufacturing garment orders for Charming
Shoppes Inc., Marks and Spencer (Style and Co.) as well as home furnishing products.
Production Capacity12
0.1 0.4
0.7 1
2.5
8
4
0
1
2
3
4
5
6
7
8
9
1981 1985 1990 1995 2000 2002 2005
projected
NumberofGarments
Produced(milions)
Design/Sampling
Modelama has a fairly large design department. Typically, Modelama will present their
company profile to the buying agencies of MNCs, who will then contact them with a
development package if their profile fits their needs. Then there is some back and forth
communication between Modelama and the MNC to reach an agreement in terms of
product design, volume, and delivery times.13
Gayatri Lal, an alumnus of the National Institute of Fashion Technology (NIFT), is one
of the principal designers. “My team of designers scans international trends and comes up
with a tentative collection of not only designs but also shades. We then sit down with the
stores, fine-tune the patterns, add a bit, subtract a bit, and get down to manufacturing.
Some of the orders can be pretty huge - 80,000 pieces, for instance.”14
11
According to interview with the Director.
12
From company website and brochure.
13
From interview with Director and Senior Merchandising Officer.
14
Makhijani, Vishnu. “Indian Fashion Firms Adopt Global Pret and Couture.”
<http://www.ittimes.co.kr/en/node.asp?em=M&mcode=200602&idx=1083>.

Quality Control15
Modelama’s motto is “build quality rather than check quality.” Modelama emphasizes
technology and internationally acclaimed systems to maintain a high level of quality.
Procedures are based on aql 4 point system by which all fabrics are screened and
categorized. Modelama has an in-house laboratory that is equipped with testing machines
for AATC Standards and has developed in-house grading systems based on ERP. Tests
include tensile strength, tearing strength, pitting test, PH check, color fastness to light,
laundering and crocking, GSM check, etc. In the sewing departments, they use
internationally standardized procedures like the traffic light quality assurance system.
Approximate number of workers16
Modelama employs a total of ~6,000 workers in all plants. Site visited by the researcher
employs about 1100 workers (including about 15 accounts staff), over 90% male.
Departments17
Production (~800 Workers)
There are about 560 tailors. The floor is laid out in dozens of assembly lines, at the front
of which is displayed an “Hourly Production” dry-erase board with the line number,
supervisor name, input, output, and number of workers. An example line was sewing
collar parts with a total of 46 tailors and 5 helpers.
The company deploys over 3000 imported sewing machines with customized
workstations. Machinery includes Auto Zig Machine, Auto Pocket Welting M/C,
Programmable Sleeve Setter Stations, Auto Surging Machine, Auto Dart Making
Stations, Pneumatic Button Hemming Stations, Differential Feed Machines Needle Feed
Machine, Top, Differential and Bottom Cylindrical Bed Unison Feed Machine, Blind
Hemmers, Auto Belt Attaching Stations, Multifusing with Three Track of Loading (High
Performance Macpee).
Cutting (50-55 workers)
The cutting department had five lines of machines laid out with worker stations.
Machinery includes Auto Spreaders, Autocad (Lectra), Auto Cutter (Lectra), Band Knife
M/Cs, Air Flotation Tables.
Washing (24 workers) and Finishing/ Pressing (175 workers)
The finishing area had lines of workers pressing and folding clothes. This was the only
department with women. The product was women’s fashion blazers for Style and Co.
Washing machinery includes a wet and dry processing unit comprised of micro processor
controlled washer extractors, perc based dry cleaning machines, sand blasting, and
brushing machines (from light softener washes to heavy enzymatic washes).
15
16
From interview with Director and Human Resources Manager.
17
Information on machinery was primarily taken from the company website. Information on
workers and floor layout is specific to the unit visited and is taken from an interview with the HR
Manager.

Pressing and finishing machinery include multipresses, dummy presses, flatbeds,
calendaring machines and range of buck shapes and steam irons from manufacturers like
MACPII, Veit, Trevil, and Renzacci.
Embroidery
Did not observe embroidery process during visit. Has hand and machine embroidery
capabilities. Machinery includes 20m length Schiffley Embroidery (Lasser & Saurer),
200 single head and 6 multiple head computer embroidery machines.
Additional Machinery
Factory has a special conveyor system that moves products from assembly lines to other
departments. HR Manager boasted that Modelama was the only factory in India to have
this machine, stressing how much state-of-the-art machinery has contributed to the
quality and productivity of the manufacturing process.
Productivity Schemes
Company has production planning meetings consisting of the HR Manager, Production
Manager, and line supervisors who perform time studies on particular styles and set
worker targets. No workers are involved in these meetings. The targets are communicated
to workers by line supervisors and dry-erase boards on the production floor that display
productivity goals. The Director said that workers are given incentives in productivity
schemes if they reach their targets. However, the HR manager said that no incentives are
given, indicating that he would like to develop such a system in the future. If workers
cannot reach their targets, the HR manager stated that no punitive measures are taken as it
is prohibited by law. He talked vaguely about “helping” the worker to reach their targets
or perhaps moving them to another department for which they would be better suited.
The production manager gave the researcher a copy of a time-study conducted for
Charming Shoppes, Inc style.
VII. WORKING CONDITIONS
18
From to
Work timings 9:30 6:00
Timings for Lunch break 1:00 1:30 (washing)
(in shifts by dept) 1:15 1:45 (production)
Wages
Average wages Rs. 3000 per month, and unskilled minimum wage was Rs. 2448 per
month. Because the factory is not near a city, management states that they set wages
higher than minimum wage to get workers to commute.
Category Average Wage (Rs./month)
Tailors
+skilled 3500
18
From interview with HR Manager.

+semi-skilled 3000-3300
+unskilled 2710
Cutters
+machine operators 3000
+unskilled 2500-2800
Washers
+sandblasting operators 4000
+other machine operators 5000
Finishing
+pressers 3000
+skilled final checkers 3500
+semi-skilled checkers 3200
+general unskilled checkers 2700
Supervisors/Mid Mgmt
+skilled (3+ yrs experience) 7000-11000
+assistant (1-2 yrs experience) 6000
Wage Setting
For shop floor workers, supervisors conduct time studies evaluating the skill level and
productivity of a new hire. After a three-day period, workers are then offered a monthly
wage based on this evaluation, which is not subject to negotiation. HR Manager stated
that wages increase after a year.
Benefits
HR Manager indicated that workers receive the social benefits required by law, including
ESI and PF.
Overtime
Management indicated no more than four hours per week per worker, and that workers
receive double wages for overtime hours. Expressed dissatisfaction with labor laws
requiring double overtime, stating, “It should be time-and-a-half, like China.”
Labor Turnover
Estimated worker turnover per month at 7-10%. Indicated that there are a few shop floor
employees who have remained the two years the factory has been in operation.
VIII. HUMAN RESOURCE POLICIES
19
There does not appear to be common policies across the plants, except for worker
recruitment for middle management positions.
19
Information based on interview with HR Manager and documents given by HR Manager and production
manager.

Management Structure
Ms. Beneeta Seigal
Senior Merchandising
Management Staff/Accounts Personne
Assistant Supervisor
(Less skill/experience)
Helpers (Unskilled)
Skilled Tailors/Machine Operators
Mr. Shiv Singh
Skilled Production Line Supervisor
Mr. K. Kiran
Production Manager
Mr. Anil Chauhan
HR Manager
Other Upper Management Positions
Mr. Lovleen Kumar
Director
Mr. Lalit Gulati
Sole Proprietor
Founder/Chairman
Boxes with straight-line borders are positions common throughout all production sites,
while dotted-line boxed positions are factory-specific and subject to variance.
Worker Training
This site does not provide training to its workers. However, workers have a brief
orientation session during which they are informed of security measures, standing orders,
grievance procedures, Modelama’s anti-harassment policy, and vendor codes’ of conduct.
Recruitment Policy
They do not use labor contractors at the unit visited. However, according to G.
Manicandan’s “Mapping First Tier Suppliers in Garment Industry in Delhi,” Modelama
uses labor contractors for some of its other units, such as the unit located at 200, Phase-I
Gurgaon.
To recruit shop floor employees, the company posts signs on the gate, at bus stops, and in
nearby worker villages. For middle management positions, the company recruits from
training centers and placement companies and has a formalized policy that the researcher
obtained. Workers are a mix of local villagers and from Gurgaon.

Dismissal Procedure
No information was obtained by the researcher regarding a formalized procedure.
Union
There is no union in the production site visited, nor have there been unionization
attempts. Management stated that it would have no objection if workers wanted to form a
union and they are free to associate with any group they desire. “We take care of all their
problems, so there is no need for a union.”
Worker Committees
Since there is no union, they have joint employee-worker committees required by law,
such as a Health and Safety Committee, a Works Committee, an Anti-Harassment
Committee, and a Sexual Harassment Committee.20
Grievance Policy Procedure
If workers have a problem, that they can report their grievance to their direct supervisor
or upper management. HR Manager indicated that there are very few worker grievances,
and that management works to quickly solve problems in order to maintain an
atmosphere of “family.”21
Corporate Responsibility/ Codes of Conduct
Modelama’s Anti-Abuse/Harassment Policy is posted on the factory floors in English and
in Hindi. The code of conduct for Charming Shoppes Inc. was displayed on the factory
floor, but only in English. Work times for employees were also posted.
Medical Care
There is a medical room in the factory, and an ESI station 1.5 km from the factory. A
resident doctor is “available at all times,” but when asked to meet the doctor, the
researcher was informed that he was at another production site. There is a company
dentist that comes every Thursday. There are only six recorded injuries at this site for
2006. All workers were said to have received medical attention.
According to G. Manicandan’s “Mapping First Tier Suppliers in Garment Industry in
Delhi,” there are no doctors in two of Modelama’s other production units (200, Phase-I
Gurgaon and B-57 Phase-I Okhla Industrial Area). If workers suffer from minor injuries,
the company usually pays the medical expense, but avoids paying for major injuries and
illnesses, preferring to dismiss the workers.
Security
New security measures have been implemented since the quota phase-out, according to
the Customers Trade Partnership Against Terrorism, or CTPAT model. U.S. companies
have required them to uphold a more stringent counter-terrorism model of security in
compliance with U.S. Customs Security requirements regarding issues like preventing
trespassing, tampering, traceability. The factory locks its doors at night, in compliance
20
Received a Hindi copy of group meeting minutes.
21
Received a Hindi copy of policy.

with these measures. If workers stay for overtime, only their department is kept open and
the rest of the factory is shut down at 6 pm.
IX. BUSINESS BOTTLENECKS
Main problems hindering financial success according to the Director are poor relative
infrastructure, low relative levels of productivity, relative strength of the Indian rupee to
the dollar opposed to weaker Asian currencies, and government bureaucratic hurdles
regarding labor law. The Director mentioned that seasonality is an issue, advancing the
common view that the government should amend labor law to increase worker
flexibilization so that companies can more easily fire workers when there are fewer
orders in the winter. The HR Manager, however, stated that seasonality was not an issue
and that they have orders year-round. If Modelama has had as much success in outerwear
as they have stated in press releases, it would appear that seasonality should be less of an
issue for them than other companies who do not manufacture winter clothing. In 2002,
the Chairman stated that though the South is better known for it, Modelama successfully
invested in the necessary infrastructure to export ~Rs. 25 crore in jackets alone.22
X. INDUSTRY COMMENTS
The Director opined that the only reason MNCs were still placing orders in India is
because they did not want to overexpose themselves in China. A business strategy that
Modelama is looking into is “triangular shipping,” a more developed system of
subcontracting modeled on Southeast Asian business strategies. MNCs would present
their contract orders to Modelama as an Indian company, whose upper management and
design departments would remain in India. Modelama would then shift the actual
manufacture of the product to either countries with lower labor costs like Sri Lanka or
duty-free countries, and then ship the product from that country.
In an interview with Apparel Resources magazine, Lalit Gulati, the Chairman, and Sanjay
Gulati, the former Director stated:
Lalit: We do not consider machines as individual equipment but as a complete
workstation. The idea is to convert a single lockstitch machine into a machine which can
do a specialized jobs…so that we do not have to worry about the skill of the o,perator.
We do not need masters; we need operators who can be trained. This can be achieved by
deskilling operations to the simplest and most automatic level…We convert the machine
with the help of our in-house engineers into individual units by developing different
work-aids that convert a normal lockstitch machine into a workstation.
Sanjay: …We have to train the operators to work on these re-engineered machines and I
myself have worked on the machines eight hours to familiarize myself.
Lalit: Machines change according to the product requirement…We have to be flexible
because the buyer doesn't buy one thing all the time.
22
Pandey, Vinita. “Build Quality Rather Than Check The Quality.” Apparel Resources.
<http://apparelresources.com/defaultnextone.asp?msg=2710&cod=newsin detail&nam=>.

Sanjay: It is a very unique combination of machines that we have that gives us this
flexibility of handling [versatile] product [mixes].
XI. PERSONAL EXPERIENCE
Modelama used an Italian consulting agency for the design of two of their factories, when
they began to develop the infrastructure to manufacture outerwear. The unit visited is the
site of their corporate offices and was built two years ago with the help of industrial
engineers. The high level of attention paid to infrastructure and personnel management is
probably not typical of their older factories. This is likely the factory to which buyers are
taken, as it is the most modern.
Modelama was the first company to be interviewed by the researcher. Contact was made
by calling the general inquiry number on the website, then was directed to a Senior
Merchandising agent, who was not available on the date of the interview, but directed the
researcher to her colleague. Modelama was very open in disclosing information about the
factory unit. The only question that management would not answer was regarding a
detailed financial breakdown of the company.

2. SHAHI EXPORT HOUSE PVT. LTD.
The information in the following company report was primarily obtained from interviews with the
General and Divisional Managers of Marketing, the company website, business articles, and G.
Manicandan’s CEC report.
I. CONTACT INFORMATION
Contact People
J.D. Giri, Senior Management
Ashok Raman, General Manager of Marketing
Mobile: 98-18212505
E-mail: ashok.raman@shahi.co.in
Ajay Khanna, Divisional Manager of Marketing
Mobile: 93-13369269
E-mail: ajay.khanna@shahi.co.in
Head Office Faridabad23
Industrial Plot 1, Sector 28
Faridabad 121008, Haryana.
Tel: +91-129-2273970/80
Fax: +91-129-2273485/91
E-Mail: seh@vsnl.com
Head Office Bangalore
Belandur Gate, Sarjapur Main Road
Bangalore 560034, Karnataka
Tel: +91-80-28439214/15
Fax: +91-80-28439356
E-mail: shahiblr@vsnl.com
Website: www.shahiindia.com
Production Units:
Plot No. 1, Sector 28, Faridabad.
Shahi Export House has a total of eighteen manufacturing units. Two or three other units
are in Delhi (Noida) and a fabric processing unit, Palmprint Textile, is in Ghaziabad.
The remaining woven and all knit production sites are located in Bangalore.
II. BRIEF HISTORY
Incorporated in 1974 in Delhi. Harish Ahuja, the owner of the company, is former vice
chairman of the Apparel Exports Promotion Council of India.24
23
Unit visited by the researcher.

III. BASIC PROFILE
Legal composition of the Company
Private Limited Company. Up until a year ago, the sole proprietor was Harish Ahuja,
who is now the Managing Director. Family-owned.
EOU Information
No information was obtained regarding registration and EOU capabilities, though any
exporter of this size must have at least one registered EOU for importing capabilities.
Exports/Imports
100% exports. Shahi does not manufacture for the domestic market, nor does it currently
have plans to do so.
Product Mix
Areas of specialization are mostly ladies woven tops and men’s tops. Shahi has expanded
to home furnishings in the past year, but it is a small fraction of turnover ($5-10 million).
Shahi’s product line covers casual and formal men's and boys', ladies' & girls' blouses ,
ladies' and girls' dresses, men's and ladies' bottoms.
The knitwear product range includes 3 button polo shirts, t-shirts, tailored collar polo
shirts, turtlenecks, mock neck, jackets, tanks tops, lingerie, loungewear, golfwear,
sportswear, sleepwear.The fabrics range includes solids, yarn dyed single jersey, pique,
interlock, rib, flat back rib, textured knits, jacquard, engineering stripers, full jacquards,
heavy jersey in cotton, polyester cotton, polyester viscose, double mercerized, 100%
polyester polar fleece, spun filament, cotton fleece, indigo dyed units, acrylic wool, and
circular woolen knits.
Clients
Bobbie Brooks (Woman), Solutions (New York), The Children’s Place, Van Heusen, At
Last and Co., Carolina Colours, Carolina Blues, Von Daniels, Cento Mila, Hollister Co.
(Pacific Merchants), Euro Open, Seacorn, Enzo Lorenzo, Akademiks, Natural Issue, Sag
Harbor (Sport), St. John’s Bay, Faded Glory, Cherokee, Ralph Lauren, Old Navy, A & F,
TKS Basics, Jeans Dynam, Cross-Bow, American Khakis, Abercrombie & Fitch, Bleu,
Arizona Jeans Co., Place Jeans, No Boundaries.25
Wal-Mart, GAP, H & M, Target
Stores, JC Penny’s, Liz Claiborne, American Eagle.26
24
Fashion Newsletter, No. 2, 2005.
<www.lawson.com/www/resource.nsf/pub/Fashion_News_05_02_en2_Webb.pdf/$FILE/Fashion
_News_05_02_en2_Webb.pdf>.
25
From company brochure, which was printed in 2005 by the Bangalore office. It is primarily
information taken from the website with a few new passages regarding Human Resources and
corporate responsibility.
26
Remaining client names were obtained from interview with Divisional Manager of Marketing.

Awards
Wal-Mart International Supplier of the Year 2000 (can’t read others)
IV. FINANCIALS
Turnover
$140 million 2005-200627
$120 million 2004-200528
$90 million 2003-200429
Other Financials
Breakdown of Sales Revenue30
Est USD 2006 % of Sales Per Unit Price31
Material Cost 70 million 50% $3.25
Labor 16.8-23.8 million 12-17% $0.78-$1.11
Trims and Packing 14-28 million 10-20% $0.65-$1.30
Depreciation 1.4 million 1% $0.07
Machinery upkeep 2.8 million 2% $0.13
Overhead 2.8 million 2% $0.13
Embellishments32
7-14 million 5-10% $0.033-$0.65
Profit 14 million 10% target $0.65
27
Estimated by General Manager of Marketing. Turnover estimates varied by tens of millions of
dollars between the GM and the Divisional Manager of Marketing, so figures cannot be
considered accurate.
28
Fashion Newsletter, No. 2, 2005
<www.lawson.com/www/resource.nsf/pub/Fashion_News_05_02_en2_
Webb.pdf/$FILE/Fashion_News_05_02_en2_Webb.pdf>, accessed July 2006.
29
Estimated by General Manager of Marketing.
30
These figures were estimated by the Divisional Manager of Marketing in the space of 5-10
minutes, so they can only be thought of as a rough approximation.
31
Based on the company’s average unit price of $6.5 USD. Did not obtain average retail markup
information, though generally it is four to seven times the unit price of the garment.
32
Embellishment costs such as embroidery depends on style. It can be none or most of the unit
price. Percent of sales is based on an average estimate given by the Divisional Manager of
Marketing.

V. BRAND INFORMATION
Shahi's Export Market
84%
15%
1% U.S.A.
Europe
Other Licensees
(Japan, Middle East,
Australia)
Major Clients
Brand Origin Lgth of Relationship % of Turnover
Wal-Mart U.S. 18 years 10-14
GAP U.S. 6 years 7-14
H & M Europe33
6 years 5-14
Target Stores U.S. 4-5 years 3-8
JC Penny’s U.S. 15-16 years 3-8
Liz Claiborne U.S. 3 years 3-4
Abercrombie and Fitch U.S. 5 years 3-4
American Eagle U.S. 4-5 years 3-4
Stated that do not have many huge clients; sales are mostly spread out among 15-20
buyers at any point in time. Buyers haven’t changed considerably post-MFA, though they
are planning to increase shares in Europe.
Buying Agency or Direct
About 30% direct relationships, the rest through buying agencies. Stated that it is easier
to deal with buying agencies in India than to maintain a direct relationship.
Unit Prices (USD paid to factory per piece of garment supplied)
Unit Price Range Average Product Mix Type Delivery Time
$3.30-$26 $6.50 Casual, High Fashion Mostly FOB34
60-120 days
Liz Claiborne can be up to $20, A & F can be up to $26, Wal-Mart is usually $4.50.
Unit Prices Since MFA Phase-out
Unit prices have gone down an estimated 7.5-15%, depending on the product. Prices for
pants have dropped more, because of the nature of the quota restrictions.
33
In the U.S. as well, but the majority of the sales are to the European market. H & M is also the
company’s biggest client in Europe.
34
Very few landed costs, though Abercrombie was mentioned as a landed cost buyer.

VI. INFRASTRUCTURE
Subcontracting
Shahi does not subcontract.
Production System
Assembly line system.
Production Capacity
Shahi as a whole: 2.4 -2.8 million PCs per month
All Delhi factories: 300,000 PCs per month
Production site visited: 150,000 PCs per month
The knitwear sewing facility is capable of producing 250,000 pieces per month. Efforts
are on to increase the knit production capacity to 0.5 million pieces per month.
When the researcher visited the unit, Shahi was producing orders for many different
buyers, among them 85000 pieces of peasant blouses with lace trim for GAP (Old Navy),
denim jeans for Woodland, and 5,000 pieces of embroidered corduroy fashion blazers for
Monsoon company.
Design
Shahi has two design departments located at the head offices in Delhi and Bangalore.
Buyers send a “technopack” and/or samples of the “look” they’re going for, Shahi’s
design departments produce a sample range for the buyer, who then shops around until
they reach some sort of agreement.
Quality Control
Shahi has a fabric division that handles knitting, processing, and inspection. Fabrics are
sent to in-house testing facilities to ensure that they adhere to STM standards. The
laboratory is equipped with a Datacolor Computer Colour Matching System coupled with
a Datacolor automatic Dispenser to ameliorate human error as well as a Mathis Padder
with Dryer and Steamer and a replica pilot plant of bulk dyeing machines. The lab to bulk
co-relation is maintained above 95%. The lab has a Datacolor infra-red dyeing equipment
for exhaust dyeing. The color management group handles the product shade sorting and
color related defects like listing and end-to-end problem detection. It is equipped with
various machines that check tensile strength, tear strength, abrasion resistance, pilling
resistance, shrinkage, fabric drape, fastness to various agencies (washing, crocking,
perspiration, etc.).
Processing
Palmprint Textile is Shahi’s wet processing plant in Ghaziabad. Woven fabrics like
poplin, twill, canvas, gauze, etc., and made of cotton, linen, rayon, and lycra blends are
processed to international standards. Shahi makes prints like reactive, vat color discharge
on reactive grounds, and pigments apart from some special printing techniques like burnt
out effects on polyester-cotton blends. The unit produces 9000 meters of processed fabric
per day. The pre-treatment section houses an Osthoff Gas Singe & Desize machine,

Benninger Continuous Bleaching Range, Ben Dimensa Chainless Merceriser. The
Dyeing Section has machinery like a Kusters Cold Pad Batch & Benninger wash range,
Continuous Dyeing Range , Jet Dyeing, Benninger Pad-Dry (with Kuster Padder) and
Benninger Pad Steam Range. The unit has twelve color rotary Printing Machines, with
after treatment machines like continuous Ager, Loop Ager , Star Agers , Polymerisers
and Washing Ranges. The designing department is computerized with small yardages
tackled on a Baby-Pilot Rotary Machine. The Finishing Section is equipped with
Stenters, a Relax Dryer cum baker, Emerising (Peaching) Machine & Preshrinking
Range, Speciality finishes (apart from normal silicon or soft finishes) like easy care (Self
Smoothening rating 3-3.5), Permanent Hydrophilic, Stain repellant–Teflon , Water
repellent, and application of Anti microbe or Permanent Fresh and Permanent Perfume.
Knitwear
The knitwear sewing facility is equipped with Pegasus top feed, micro processor
controlled with automatic trimmers, CF Italia Collar attaching and latest Button Hole
Machines capable of handling fine textured knits.
Number of workers
15,000 in all of Shahi’s production sites
5,500 in all of Shahi’s Delhi (Faridabad and Noida) units
Shahi’s Delhi factories employ 80% female workers, while in the Bangalore factories
they are 90% female.
Workers at production site visited
Department and category ~Number of workers Gender
Production Total 1800 Mostly female
+Unskilled 400-500 --
+Semi-skilled and Skilled sewing
operators
1100-1300 90% female
+Line supervisors 25 Mostly male
Cutting Total 85 Mostly male
+Unskilled fabric spreaders 60 --
+Skilled machine operators 25 --
Centralized Storage35
Total 150 --
+Semi-skilled and unskilled 120 --
+Skilled workers 20 --
+Staff who manage quality control 30 --
Washing Total 150 --
+Semi-skilled 120 --
+Skilled machine operators 30 --
Finishing (incl pressing/checking) 600 Mixed
+Unskilled (heavy lifting) 50
+Semi-skilled 410
+Skilled 100
35
Stores for Noida production units as well.

+Supervisors and dpt/line-in-charge 40
Sampling (think incl in production) 50-150 Mostly female
Remaining marketing, merchandising, accounts, shipping staff Mixed
Total number of workers: 3,000
Machinery
6,500 in all of Shahi’s production sites
1,800 in all of Shahi’s Delhi (Faridabad and Noida) units
750 in production site visited
The CAM based cutting department can make 75,000 cuts per day, while the 60 multi-
head computerized embroidery machines have a capacity of 800 million stitches per day.
The latest CAD software enables quick processing of pattern creation, grading, marker
making and global electronic exchange of pattern data. The production unit boasts
machines from Brother, Juki, Ngai Shing, Durkopp Adler, Hashima and Kannegiesser. It
is also equipped with single needle lock stitch programmable machines with UBT, double
needle-needle feed split bar machines, single needle top and bottom variable feed
machines, feed-off-the-arm machines, fusing press, collar/cuff turning and blocking
machines, pocket machines and automatic pocket welters.
Washing
The washing facility puts out over a ton of garments per day through specialized wash
treatments such as softener wash, stone wash, enzyme wash , desize soft wash and golf
ball wash.
Embroidery
Most is done by computer, very little is done by hand.
Sampling
This is a fairly large department in the production site visited. There are two departments
for sampling, one for production and another room with rows of computers in which
employees work on digitized patterns and samples.
Productivity Schemes
The unit visited has an industrial engineering department with eight staff, and it was
stated that each unit has a similar department. This department is responsible for time-
motion studies and an operation breakdown. They conduct production planning meetings
jointly with managers and supervisors by department. They also conduct joint department
meetings. These meetings set targets for the shop floor workers, who are not involved in
these meetings; line supervisors convey target setting to them.
This unit has an incentive scheme for productivity, in which workers get bonuses for
exceeding their targets, which can be 10-25% of monthly salaries depending on how
difficult the style is. The incentive scheme only applies to skilled and semi-skilled
workers. Its implementation and form depends on the department. For example, in
sewing, every hour the target is marked, and there are quality bonuses if clothes do not
need repairs. In finishing, incentives depends on how many pieces are finished. The
Divisional Manager of Marketing states that they always had incentive schemes, but they

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