Global clothing brands turn to India amid Bangladesh unrest, orders surge

Tiruppur and Noida apparel export industries are witnessing a surge in demand orders from various international clothing brands

‘Somebody’s loss is somebody’s gain.’

This age-old business theory still rings true. As the political unrest in Bangladesh continues, Tiruppur, a small town in Tamil Nadu, as well as the Noida textile cluster, are seeing an increase in their fortunes as international clothing brands seek alternative production options.

Tiruppur's knitwear export industry has secured export orders worth Rs 450 crore over the last two weeks, as brands from Germany, the Netherlands, and Poland turn to India amid the instability in Bangladesh, according to a report by The Economic Times.

The second case pertains to a Rs 10 crore fixed deposit by the Karnataka State Pollution Control Board with the former State Bank of Mysore, now merged with SBI. This amount was allegedly misappropriated to settle loans for a private company using forged documents.

In light of these issues, the circular (issued in August) stated: "It is informed through this notice that the state government’s departments, public sector units, corporations, boards, local authorities, universities, and other institutions should withdraw all deposits/investments from all branches of SBI and PNB, and no future deposits/investments should be made."

Major retailers, including KiK, Zeeman, and Pepco, have placed urgent orders for garments priced around $3 each, to be delivered before Christmas and New Year, the report said, citing KM Subramanian, president of the Tiruppur Exporters’ Association (TEA).

Unprecedented demand for knitwear from global brands

The orders include a variety of knitted garments such as kids' wear, nightwear, tops, and pyjamas.

Calling it an ‘unusual situation’, Subramanian noted that typically, brands place their orders in December and January for the spring/fall season, or in June and July for the holiday season. The sudden surge in demand ahead of Christmas is a first for the Tiruppur hub.

Additionally, global brands have also initiated social auditing at 10 newly selected knitwear factories in Tiruppur, signalling potential for increased future orders. “The auditing process is expected to be completed by mid-September. If these factories meet global standards, more orders will follow in the New Year,” he said.

Noida apparel export cluster sees increased orders from Zara

Noida's apparel export industry has also benefited, with the Noida Apparel Export Cluster (NAEC) reporting a 15 per cent increase in orders from Zara over the last month, compared to the same period last year. The NAEC president mentioned that Zara has requested women’s tops and dresses, priced between $5 and $9, with a tight delivery timeline of 60 days. He added, "Such large orders at this time of the year are unusual."

A Sakthivel, head of the southern region of the Apparel Export Promotion Council, pointed out that some brands have rerouted orders from Bangladesh to Tiruppur due to the political unrest. However, he noted that India could attract even more orders if the government finalises a free trade agreement (FTA) with the European Union. "Bangladesh benefits from its FTA with the EU, which gives it a competitive edge," Sakthivel remarked.

India's apparel exports narrow gap with Bangladesh