As this realisation sinks in, it appears that a consensus is emerging on a need-based technology upgradation with a step-by-step approach.

"Companies should initiate the process of modernisation at the earliest with a large dose of information technology. Japan could do it, why not we," asks L V Saptharishi, executive director, NIFT. There are over 37,000 registered garment exporters. However, some entrepreneurs are not very sure about the benefits from this exercise. "Upgradation of technology is important but unless and until environment is created for this, it will not be able to provide the expected benefits," says N K Chawla of StyleCraft.

But why is the modernisation so important for this industry in which there is lot of scope for exporting India-specific items? "If we don't plan and make strategies, our exporters will be knocking at the doors of Geneva after the coming into force of WTO guidelines," says Saptharishi.

Long-term planning is necessary to tackle the problems. "We have to find a way to tackle it by reducing cost of production so that our products are globally competitive with a diverse range. Diversified range is necessary to keep going in the international market. So that, if one product is kept out, other products can be substituted in the global market," adds Saptharishi.

N K Chawla of Style Craft says that the technology upgradation bug has beaten the industry due to the New Investment Entitlement (NIE) system under which an entrepreneur can import machinery costing Rs 50 lakh or more and then receive quota of 1,000 pieces per lakh. "Some of the exporters as well as domestic producers have already startedacquiring foreign machines to reap the benefits of NIE," he adds.

"Upgradation is necessary in the case of classical garments such as T-shirts. Some entrepreneurs from the South are producing good quality T-shirts," says Chawla.

Nevertheless, it is time to first counter the dipping demands in the international market, feel entrepreneurs. Chawla says that the market situation is bad due to the dipping orders and prices in the international market. This is because of the competition from neighbouring countries and devaluation of currencies in South-East Asian nations which has given the foreign buyers greater access to these markets. There is no order despite quota under NIE. "One has to revise the prices according to the movement of the market. It is, therefore, difficult to go for upgradation of technology under present circumstances," says Chawla.

Further, there are some inherent bottlenecks. Says Saptharishi, "Raising SSI investment limit to Rs 3 crore is a timely announcement for the garmentindustry. But, we don't have cluster and other requirements."

Chawla says: "Our competitors have an edge over us since they have industry-friendly rules and regulations in their countries. In contrast, in India one has to pay at every stage to get work done." Refunds come late and bank rates are also high. Support in the import of machines hardly serves any purpose as the demand is not growing while cost of production is going up.

Chawla favours industrial parks in rural areas. "Labour cost in India is much higher in terms of productivity. In the European countries, mechanical cities have been established in the rural areas but in our country we depend on the migrated labour for whom cost of living is high when they come to cities. This forces them to ask for higher wages despite being less productive," says Chawla.

There is no denying the fact that a proper strategy in this regard is the need of the hour. Saptharishi feels that there is a gap in terms of productive management and diversification plans.Sound marketing strategies are required to substantiate the efforts towards global competitiveness.

D O Koshy, chairperson, Apparel Marketing and Merchandising Department, NIFT, says, "There is mad rush for technology upgradation but before that fulfilment of some of the organisational requirements is a must. We should not be overwhelmed by the aura of foreign machines."

Koshy gave his prescriptions to the entrepreneurs at a conference on manufacturing strategies for 21st century during the garment technology fair GARTEX-98 in the Capital.

Mass customisation, which includes high level of flexibility, responding to needs and demands of the customers and real time merchandising, is a must. "It is about responding to the market at the lowest possible time," says Koshy. Punctuality in delivery can be achieved through an overriding concern for logistics at every stage of manufacturing. This can be made possible through on-line systems.

Synchronisation of demand and supply cannot be overlooked. There shouldbe a quick response system (QRS) which can forecast risk and help formulate accurate response. "Manning the risk through forecasts is the key to success. For, market does not wait for stable systems, you have to be reactive," says Koshy.

IT integration is a must for adopting foreign machines. There should be a timely response-oriented approach to cater to the needs of changing consumer preferences, says Koshy.

"If the domestic companies don't go in for modernisation, we will continue to be marginalised," says Saptharishi.

Koshy suggests a "Lift as We Climb Approach" for technology absorption for creating a champion factory. "Technology does not come by only installing machines. It is an attitude. Technology should be according to the kind of products you have. It is not a one time thing, one should go step-by-step. Analyse your capability and then adopt technologies according to the requirement. Massive one time approach is not required," says Koshy.

Further, "there should be a shift from productionmanagement to productivity management with the help of appropriate policy for incentive systems. Compressing time without sacrificing quality is the prime requirement. Moving from a cost-based approach to a time-based competitive mode is a must," says Koshy.

But for all the garment exporters, it may not be easy to cope up with the situation single-handedly. Says Saptharishi, "What is required is unit-wise, region-wise strategies for total upgradation of technology in five years. A collective approach from entrepreneurs, institutions and government which should include dissemination of information and greater interaction between them is the need of the hour." A dynamic, pulsating enterprise to achieve this is already present, he feels.