HOSEX (FOHMA Hosiery Cost Index)
The Federation of Hosiery Manufacturers’ Association of India (FOHMA) is the apex body for the hosiery industry in India. Many Regional hosiery associations are members of it, apart from large brands who have significant stake in the market. It is FOHMA’s duty to ensure that the interest of all the industry players is kept in mind and their problems represented /resolved at the Government level and also amongst the industry players. The prime objective of FOHMA is to provide a strong and collective voice for the industry.
Over the past four decades, FOHMA has been constantly endeavouring to come out with new initiatives to assist the industry in becoming world class and organised to benchmark itself against the best in the world.
Creation and launching of the “FOHMA Hosiery Index” is a step towards making the industry more aware of its costing & profitability. This will enable companies to benchmark their pricing to a systematic cost plus scenario and ensure the same is accepted by the market. We are slowly graduating from a fragmented market scenario to a more organised one, where more and more large buyers are emerging in the shape of organised retailers, institutional players and ecommerce giants. They have much more bargaining power and can squeeze companies/brands in an inflationary situation. 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.
At FOHMA we hope that with proper support from the industry players and all aligned people around us, it will be possible to create a universally accepted Index which will be a guiding tool for price negotiations.
This will be the first index for any textile industry segment in the country. It has never an easy exercise to create an index for any industry consisting of such a varied range of products with different cost factors. Even for a same product, cost could vary by even more than 10% from company to company. Hence many can challenge the validity and accuracy of such an Index., however need to note that cost index only covers movement in cost.
This Index has been conceptualised and created by FOHMA Vice President (Central) - Mr. Sanjay K Jain.