The Federation of Hosiery Manufacturers’ Association of India (FOHMA) has formulated a bath breaking strategy for Indian manufacturers to break the ice and be updated of real value of raw products. The team has launched the first ever Cost Index in the industry named FOHMA Hosiery Cost Index (HOSEX). The index is one of the finest initiatives of FOHMA’s endeavours over the past years to assist the industry in becoming world class and organised to benchmark itself against the best in the world. The idea shall enable companies to benchmark their pricing to a systematic cost plus scenario and ensure the same is accepted by the market
HOSEX with its database initiating from the year 2010 is designed to cumulate and calculate the average movement in costing for a particular basket of hosiery goods over a period of time. The index would be updated at the beginning of every year. For instant if the cost was Rs 100 in January 2010 and the index is 132 today, it means over the period the cost for the industry has gone up by 32%. However specific products may have gone up more or less depending on its specifications. The index gives a broad idea for the industry as a whole. Its relevance is more in giving an idea of the direction of movement of costing rather than absolute movement.
FOHMA’s re-elected President Mr. K.B.Agrwala (Rupa & Co), stated that the creation and launching of the “FOHMA Hosiery Cost Index” is a step towards making the industry more aware of its costing & profitability. He believes it to be a unique initiative of the association and over time the same shall become a reference point for the total hosiery/knitwear industry. He further confirmed that FOHMA would work on more such innovative and industry needed matters to ensure growth and development of the Industry. The Index has been conceptualised and created by FOHMA Vice President (Central) – Mr. Sanjay K Jain (T T Ltd). He mentions that “With proper support from industry players and all aligned people around us, it will be possible to establish a universally accepted Index which will be a guiding tool for both buyers & sellers “
The Index shall promote the Indian textile market from being fragmented to more organized by rendering bargaining power to buyers and sellers. The press release mentions that “We are well aware that India is an inflation prone country due to its structure and phased process of development. In such a scenario, it gets difficult for brands and companies to convince buyers for a price hike. On the other side it will also provide direction to the buyers and help them in ensuring a correct pricing for them. This index is expected to create a win –win and balanced scenario for both buyers & sellers.”