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| | Model G 1-203 from Amrit is a 240gsm cotton jacket in blue and gray. The four pockets have yellow gussets. Price is $7.50. |
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Flexibility, vertical integration and R&D capability help makers manage unfavorable external conditions. India suppliers of men's casual and fashion jackets are highlighting different aspects of their capability in order to cope with myriad challenges. The garment industry is predicted to consolidate due to lower profits. This is based mainly on stiff price competition with manufacturers in China, Vietnam and Bangladesh. Margins continue to be cut as the dollar weakens against the rupee, in particular by 10 percent over the past 12 months. But according to Vijay Mathur of the Apparel Export Promotion Council, buyouts are not yet prevalent. Small enterprises have staved off mergers with their flexibility. By operating on a cut, make and trim basis, they are able to turn out modest quantities of complex models at viable rates. Large companies, meanwhile, still prefer subcontracting orders seasonally instead of investing in fixed assets because of less risk. Moreover, they are emphasizing vertical integration as a major advantage. The presence of spinning, weaving, knitting, dyeing, sewing and finishing machines in factories helps them control pricing, reduce lead time and supervise quality at all stages of manufacture. As buyers prefer to source basic jackets from other countries in Asia with lower prices, product development is becoming more important to India makers. Companies are funneling R&D expenditure into attendance of trade shows by their designers. They are also taking advantage of the local craft of handembroidery. The government is playing a role in cultivating exports as well. In the second half of 2007, it ratified a system of refunds for port, road and rail service taxes in order to ease losses caused by the appreciating rupee.
Cotton models mainstream
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