Efficiency Levels of Major Apparel Manufacturing Clusters in India

You may be measuring performance of your factory on daily basis. Because you believe "present performance standard can be improved only if it is being measured." But do you know how other factories are performing? What is the average efficiency level of different parts of India? And what would be your efficiency benchmark to move next level of performance standard? Many factories don't yet measure their performance level in terms of operational efficiency and other major KPIs. You will get answers of all the above questions in this article.

From last one year I have personally observed performances of 10 factories in National Capital Reason of India and analysed monthly efficiency (sewing section) of those factories. Efficiency is within a range of 30% to 45%. One  of them is exceptionally doing well at 60%. When I looked into daily line efficiency of the same factories, lines work upto 65% efficiency. But when data is summarised to calculate monthly line efficiency it goes down below 40%. I have come out with many reasons for the low performance of the factories. Few reasons are longer line setting time, pick and valley of orders during the year, production planning issues etc.

I have also attached a table of Technopak analysis on efficiency levels of major apparel manufacturing clusters in India against a benchmark factory. Following information may help you to understand average performance level of Indian apparel factories.

Region / Cluster
Delhi / NCR
36% - 42%
40% - 45%
Bengaluru and Chennai
40% - 45%
42% - 50%
Average Indian Factory
Benchmark Factory (approx)
Source: Technopak Analysis

It will be a good resource for the industry people if you share efficiency level of your factory or region (product specified).

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