28 February 2023, Mumbai
A small piece of fabric called a handkerchief; Typically Handkerchiefs are generally supposed to be made out of materials that can provide a good degree of absorbency, for instance, fabric like linen, silk, or cotton is construed to be a reasonable choice for making a handkerchief.
The handkerchief industry in India has been thriving for many years, with a rich history and cultural significance.
Universe of handkerchief
What are they used for; Simplistic description of a handkerchief and the limited point being made here is that an article is handy and can be used as a pocket-sized towel so to say.
The secular demand for handkerchiefs in India continues to be pretty high, given that the product has varied applications & used for myriad purposes, spanning from wiping sweat, blowing the nose, wiping your face, and drying tears semblance is that let us not forget imaginative use cases like using it as pollution masks while driving a two-wheeler and as a scarf while worshiping at the other end of the spectrum.
Whilst, Innovation-Led Growth has fuelled massive growth in the value & volumes of these fashion accessories in recent years. So an impressive growth story, resultantly in spurring an increasing number of manufacturers and exporters throwing hats in the ring to cash in on.
Compelling reason
Hanky is quite often used for hygiene purposes through the period there have been efforts to introduce other product spectrum stuff like eco-friendly designer hankies of different sizes to broaden and deepen the consumer base to beat the fatigue level by introducing newer patterns and colors.
Needless to say, the growing awareness of hygiene & cleanliness is a fundamental demand tailwind driving & pushing volumes up in perpetuity.
Nuances
Historically, since pre-independence days India’s textile industry has been a grand contributor in shaping and driving the future of India's total industrial output, generating substantial employment & business opportunities and, the hanky industry has been a great example and a testament for decades as a bunch of countries now outsource India’s inexpensive and skillfully produced textile articles.
Interestingly India is one of the largest producers of handkerchiefs in the world on the back of positive demographics. Breaking down how the industry is stacked; It is highly concentrated in cities like Mumbai, Chennai, Kolkata, and Delhi, which have a long history of textile production.
What further adds vibrance and color to the segment is that" The handkerchief industry in India is diverse, with different types of fabrics and designs being used to create a range of products & flavour catering to varied needs and tastes. Interesting to state that, Cotton and linen are the most often used fabrics for handkerchiefs in India, albeit silk and other synthetic materials are also used to add to the bandwidth.
Market place
The Indian handkerchief industry is dominated by organized players such as Raymonds, Arvind Mills, and Zodiac Clothing Company Ltd, and in the mid-segment players like Kalp Clothing from Delhi are worth dropping the names, so to say players with a focus on quality, innovation, personalizable designs, and sustainability.
Helicopter view
The handkerchief industry in India has the distinction of providing large-scale job opportunities for many people entailing weavers, tailors, and artisans so to say, especially low/no skilled workforce as hanky making is not rocket science.
Notable here is quite often many of these workers are employed in small-scale, family-run businesses that have been operating for generations. Over the years the industry is getting more corporatized as the industry has gotten/attracted investment from large corporations, who have typically set up production units in India to take full advantage of the low labor costs and ready ecosystem.
China could spoil the party
The handkerchief industry in India is posed with several challenges in recent years, including competition from low-cost imports from China and other countries which is a constant threat to this industry; Given that China is been abusing FTAs & even though there are reports of fake Chinese factories in some of the countries where India has existing trade treaties/pacts.
However, Indian manufacturers have responded by focusing on high-quality products that cater to the domestic market, as well as exporting to other countries but we need to mention here that the numbers are still very small. The good bit here is that the government has also been providing support to the industry by offering subsidies and incentives for manufacturers from time to time.
Road ahead
As mentioned in the earlier paragraphs the Indian handkerchief industry has a range of segments dominated by unorganized industry small and medium business houses and, typically sold more out of hosiery outlets rather than like fashion accessories with value accretion as been practiced by prominent players who have contributed to its growth and success, making it a competitive, vibrant and dynamic market.
On the whole, the handkerchief industry in India is a vital part of the country's textile sector and economy and, a proxy for how well MSMEs can support the overall growth of this industry.
It needs to be mentioned here that the sector is responsible for providing large employment opportunities for many people given the nature of its manufacturing, and quite beautifully has a rich cultural history that is deeply ingrained in Indian society.
The overarching theme is that given the sector’s increasing demand and innovation, the industry is all set to grow further and, is well on its course to success going forward.
