A study on cost reduction in small scale readymade garments industry with special reference to bommanahalli zone bengaluru

Abstract

The garment manufacturers in India are largely found in micro, small and medium newlineenterprises (MSME). MSME s plays a vital role in the economic growth of India. The newlinetextile and garment industry has immense contribution to India s GDP, employment and newlineexport earnings. Indian readymade garments made a place in the foreign market at an newlineincredibly early stage due to mass availability of raw materials, cheap and easy availability newlineof skilled and unskilled labourers and low manufacturing cost. Though small-scale garment newlinemanufacturers are large in number and widespread, they are not able to access finance and newlinetechnology as the large-scale manufacturers do. Small-scale garment industry had to face newlinestiff competition not only from the domestic manufacturers, but also from the foreign newlinemarket due to liberalization and globalization. Liberalization and globalization have newlineresulted in the import of low-cost garments, forcing the small manufacturers to reduce their newlineprice. newlineThe review of literature shows that Cost Management and Cost Reduction in garment newlineindustry are not much explored by the researchers. The main purpose of this research was newlineto identify the methods and ways of cost reduction in small-scale garment industry. The newlinestudy also identifies the problems and costing practices of different factories in the study newlineregion. The sample size of 30 small-scale garment manufacturing factories in newlineBommanahalli Zone, Bengaluru, is analysed to understand the costing practices and newlinemethods of cost reduction in small scale garment industry. The data was collected using a newlinestructure questionnaire through interview schedule from the Owners/ Partners, newlineManagement, Accountants or Supervisors of different factories. Observation technique newlinewas also used in data collection. The secondary data such as financial and costing records, newlineattendance register, and labour payroll are also used for the research. The data is analysed newlineusing financial, decision making and statistical tools. newlineThe study shows that most of the factories does not