Contract Manufacturing-a Boon for the Textile Industry
16 Jul 2022
What is contract manufacturing?
Contract manufacturing is a form of outsourcing where the contractor undertakes to produce goods (or provide services) as per the specifications of the buying company. The latter focuses on assembling the parts of the products that has been outsourced and then marketing the same. Alternatively, if the entire production is taken care of by the contracting company, then the buyer can only concentrate on marketing and other business functions.
What are the advantages of contract manufacturing in textile industry?
Among the several benefits of contract manufacturing, the key factors affecting the textile industry in particular are:
Quality assurance: Given their technical and technological expertise, you are assured to get ready-to-market high quality products.
Cost saving: You can save on high-investment factory set-up and machinery costs. You can either invest in an assembling unit or a warehouse for receiving and dispersing finished products. Certain contract manufacturers will deliver directly to your retail outlets. There’s significant savings on labour costs as well.
Faster turn-around time: Your go-to-market strategy gets a vital boost if the manufacturing is outsourced to a capable partner.
Upscaling: For small businesses or start-ups, this model works well. You can start moderately and scale-up production gradually as your business expands. There’s no worries of expanding manufacturing capacities.
Design and style guidance: Some contract manufacturers take end-to-end responsibility of your product. This is not only limited to the actual manufacturing, but also pre-production assistance, such as design and style inputs, manpower training (if applicable), etc.
What is the market scenario in
textile contract manufacturing
The global contract manufacturing sector was estimated at approximately $6500 million. With a CAGR of 4.1%, it’s expected to cross $8900 million by 2029.
What is the Indian textile industry worth?
Textile industry in India has a long historical background. Around 4.5 crore employees are engaged in this sector which is slated to cross the $200 billion mark by 2029. India is the largest producer of cotton in the world and one of the leading manufacturer of handloom/ handicraft products.
How to find a suitable textile contract manufacturer?
If you are looking to partner with a reliable contract manufacturing firm, then you may look at
. The supplier base coupled with experienced professionals specializing in different areas of business, will make the entire process a seamless one.
Leave A Message
Leave A Message
Owned & Developed By