The Ludhiana knitwear cluster produces a wide range of products for winter wear like sweaters, woollen socks, pullovers, cardigans, thermal wear, gloves, muffler, baret caps, shawls, jackets, jersey, and blankets, and for summer wear like T-shirts, cotton and blended socks, under garments, knitted bed sheet, skirts, tops, sports wear, night suits, etc.. Most of these firms are unorganized and 'owner managed’ and the owner performs all basic functions of marketing, procurement and finance. Our sample survey has indicated that around 57% of the are small/micro & about 32% medium firms. The total output of Hosiery products in Ludhiana is estimated to be around Rs. 8000 Crore and the share of domestic sale and exports is more or less 70:30. However, the share of woollen knitwear exports in the total cluster exports is only around 25%, though it commands over 95% share in the domestic woollens market. . The major export markets today are U.S, EU, Middle East and Russia.

             The owners perform all basic functions of marketing, procurement and finance. As such, they do not want to appoint professionals or believe in training. External training programmes are rarely subscribed as these are considered a waste of productive man-hours and expensive. Increased pressure of quality demand and firm delivery dates in export markets have induced some Ludhiana manufacturers to set up composite units. This has increased the potential of these composite firms to de-risk product market fluctuations, which allows them to have multi skill use of labour, and provide for scale/cost advantages. It also permits firms to have a higher ICT usage, as composite firms require at both the market and back ends, a higher level of supply chain integration apart from a greater market sensitivity, in order to rapidly switch products to a reap the advantage of a flexible product-market interface. Conversely, a higher use of ICT enabled SCM products also allows firms to go in for greater diversification.

             Since there are large number of activities being outsourced in the cluster, coordination of the various supply chain activities becomes time taking which procrastinates the turnover time. Communication within the supply chain still takes place over age old communication devices like telephones. This shows that the cluster still suffers from generational gap in shifting to a higher technology gear involving ICT. For export markets, where fashion trends change rapidly, newer ICT based supply chain management strategies and technologies like the ERP are required for greater competitiveness of the cluster units.

             There is no clear dearth of the ISVs in the cluster. Either the industry requisite software are not available or their customization is not done properly, and only a few ISVs provide suitable customized products. As such, the ISV cost is very high to the few industry users due to the inefficiency of the suppliers. Process mapping, therefore, is going to be an important project facet with the ISVs. The capacity and the capabilities of ISVs need to be developed particularly in the areas like system analysis, design and technology upgradation.

             Overall, the Ludhiana cluster has a very low level of ICT investment which is reflected by the abysmally low no. of PCs in a majority of the units. Largely, the firms are using ICT in finance and accounts functions. Though, the other major areas, where ICT applications were being used are production (designing), inventory control, quality control, raw material sourcing, internal communications and marketing, the extent of usage is insignificant and require attention under the programme. The major reasons for slow absorption of ICT in the cluster ascribed by respondents are lack of knowledge in ICT, high costs of software, and high salaries of IT skilled personnel. A major priority area which is can make the monitoring and business planning tasks of the entrepreneurs much easier is the computerization of the MIS functions

             Some of the major areas requiring ICT intervention are lack of formal training facilities in technical, production and marketing and fields, very poor design inputs, lack of advanced facilities such as CAD/CAM Centers on design, lack of computerized colour matching and finishing, and lack of a local hub/center for embroidery related work which is outsourced to nearby rural areas.