Eid rush spurs production surge at Indore garment units, liquidity crunch caps gains

Indore: Manufacturing activity has gathered pace at Indore's homegrown garment units as apparel makers ramp up production ahead of Eid, one of the peak sale seasons for the readymade segment, though financial constraints limited the full potential of the surge.Manufacturers said dispatches from city-based units spiked over the past few weeks, with bulk consignments being shipped primarily to southern markets. Nearly 50% of Indore's readymade garment supplies are destined for states such as Tamil Nadu, Andhra Pradesh, Telangana and Kerala, while Rajasthan, Gujarat, Uttar Pradesh, Haryana and Maharashtra are also key markets."Eid business lifted sentiments in the market. Production has ramped up to meet festive demand, as this is a peak consumption period," said Readymade Textile Dealers Association president Ashish Nigam.Indore, home to over 1,500 small-scale readymade garment manufacturers, typically sees strong seasonal demand ahead of Eid, especially for kurta sets, pathani suits and festive wear. Dispatches usually begin about 2 weeks before the festival to ensure timely availability in retail markets.Industry representatives said order books strengthened compared to the previous month, prompting units to add extra shifts and accelerate shipments. However, several small manufacturers said tight liquidity and limited access to working capital capped production expansion."Demand is there, but financial constraints blocked capital for many small units. That restricted our ability to scale output fully despite strong enquiries," said Manohar Agrawal, a trader in readymade garments.Even so, traders expect the improved dispatch trend to continue until the festival, with Eid providing a crucial seasonal boost to the city's garment cluster, one of central India's key apparel manufacturing hubs.