MANISH GUPTA
Ranchi, June 30: Indian garment industry that witnessed labour shortage at factories across different garment hubs during the pandemic is now lining up to set up shops in Jharkhand where reverse migration benefited the local industry.
“Noida is facing acute labour shortage, whereas Jharkhand is labour abundant,” said Deepak Agarwal, CEO, Kishor Exports. Agarwal has set up his third factory in the state that was inaugurated by Jharkhand Chief Minister Hemant Soren last December.
Agarwal, who set up his first unit in 2018, has come back with more investments, now totalling to about Rs 30 crore. All three units in Ormanjhi, near Ranchi, jointly employ 2,000 workers and produce about 5 lakh garment pieces per month.
“While apparel factories all across India including South faced labour crunch during the pandemic, there was reverse migration in Jharkhand making it more sensible to invest here. We are a highly compliant company as we are exporters and we pay our workers as per industry standards. For us, the major draw is labour abundance in Jharkhand.
“Besides, the business environment in Jharkhand is pretty fine. Both the policies and, more importantly, the government are very supportive. Chief Minister Hemant Soren has been quite encouraging. There is no harassment and the local people are good. Government incentives and subsidies related to power, interest rate and training to workers are also attractive. I believe more industries will come,” said Agarwal, who is also the President of Association of Apparel Manufacturers of Jharkhand.
Another garment factory that was inaugurated by the Chief Minister in December 2021 is Shree Ganpati Creations in Ormanjhi. The factory employs 300 garment workers and produces about 25,000 jeans and other apparels per month. Their plan is to more than double the capacity by engaging a total of 700 workers in the next three months.
“We are Jharkhand- based and would like to invest and develop our own state. Why go to any other state when we have great incentives and a supportive government? The Industry Secretary and Industry Director are dynamic bureaucrats.”
“The Textile and Apparel Policy of 2016 has strengthened the entire value chain of the textile industry. The state government gives Rs 5,000 per male worker and Rs 6,000 per female worker per month as employment generation subsidy. There might be delays but people are getting these incentives. We are in our first year and our request is in the process,” said Rohit Poddar, owner of Shree Ganpati Creations.
The bright scenario for the garment industry in Jharkhand can also be seen in the journey of Ashwathy Garment, which was established by some employees of Orient Craft in 2020 in Ormanjhi. The partners are from Godda and Jamshedpur, and the financier is from Ranchi, all from Jharkhand.
The 190-worker factory with an investment of over Rs 4 crore produces about 80,000 kurtis and other ladies wear per month. It currently supplies all its garments to Reliance Trends and nourishes export plans in future.
“The major reasons for Jharkhand becoming an attractive investment destination for the garment industry are its favourable textile policy and abundant skilled labour. The wage payment supported by the government has incentivised higher employment in the state.
In Jharkhand, garment factories generally run in two shifts of 8 hours each instead of offering overtime to workers as in other states. This is because the state pays subsidy on salary and not on overtime. It generates more employment and avoids the double payment given for overtime,” said Gulzar Khan, Chief Operating Officer, Ashwathy Garment.
Among the big names in the apparel industry that are already functioning in the state are Arvind Ltd, Matrix Clothing, Shahi Exports, Orient Craft and Valencia Apparels.