Sourcing by top global fashion brands, including Zara, Gap, H&M, Old Navy and Marks &a Spencer may get hit as the local dyeing industry is facing shortage of dyes due to China importing raw materials, which are used to make dyes, from India.
Proprietors of dyeing factories in the Delhi-NCR region are considering to scale down operations, especially during a time when orders are pouring in from international markets for the Spring’ 19 season. “The price of dyes has increased by nearly 30 per cent over the last 10-15 days and it is not sustainable to carry on operations at the same rates,” said Vijay Jain, MD of SPS Processors in Faridabad.
India is a major hub for several global brands. For instance, H&M and Ikea have been sourcing from the country for over a few decades. Textiles constitute around 70 per cent of Ikea’s exports from India. Similarly, British retailer Marks & Spencer counts the country among its top five global sourcing hubs.
“The price of yarn has also been increasing over the last few weeks,” said Amit Mudris, head of sourcing & merchandising at an Italian fashion brand. “This is the period, when orders are high due to the approaching season.” The local dyeing industry, which includes around 150 factories in the Delhi-NCR region, has recently been rocked by the ban on pet coke and furnace oil, important ingredients in the dyeing process. A few plants, unable to sustain operations, have shut shop.