How to Conduct a Factory Audit for Indian Textile Suppliers
Quality audit, social compliance, and environmental audit — a complete step-by-step guide for procurement managers sourcing from India
Step 1: Choose Your Audit Type
Quality audit — is the factory capable of making your product correctly?
A quality audit assesses whether a factory has the systems, equipment, and workforce to produce your specification reliably. It covers: manufacturing process documentation, machinery condition and calibration, raw material inspection procedures, in-process quality control checkpoints, finished goods inspection procedures, and corrective action systems. A quality audit is essential before placing a first significant order with any new supplier.
Social compliance audit — ethical labour and working conditions
A social compliance audit assesses labour rights, working conditions, wages, working hours, freedom of association, and health and safety. This is increasingly mandatory for buyers supplying UK, EU, or US retail brands under supply chain transparency legislation (UK Modern Slavery Act, EU Corporate Sustainability Due Diligence Directive). Social audits typically reference WRAP, SA8000, BSCI, or your brand's own code of conduct.
Environmental audit — water, chemical, and energy compliance
For sustainability-focused buyers, an environmental audit covers: effluent treatment plant (ETP) compliance, chemical management and restricted substance list (RSL) adherence, water consumption documentation, energy sources (renewable vs grid), and waste management. ZLD (zero liquid discharge) certification is the highest standard for textile wet processing. This audit type is relevant for GOTS certification compliance and ESG reporting.
Step 2: Select a Third-Party Audit Agency
Major recognised audit agencies for India
Four agencies dominate third-party factory auditing in India: • SGS (Société Générale de Surveillance): Global leader with strong India network across Tamil Nadu, Gujarat, and Maharashtra textile clusters • Bureau Veritas: Strong in social and environmental audits; recognised by most major EU brands • Intertek: Known for quality and consumer product safety; ISTA-accredited for packaging • QIMA (formerly AsiaInspection): Tech-forward platform with on-demand India audit scheduling All four are recognised by major retail brands. Choose based on your brand's approved supplier list requirements.
How to book an audit
Book directly through the agency's online portal (all four have self-service booking) or through your freight forwarder if they have an audit division. Provide: factory name and full address, audit type required, preferred date range, audit scope (number of product categories), and any brand or retailer code of conduct reference documents. Allow 5–10 business days from booking to audit execution.
Step 3: Schedule and Brief the Factory
Notice period
Standard quality audits are announced with 3–5 business days notice to the factory. Social compliance audits are sometimes conducted unannounced or with very short notice (24–48 hours) to prevent the factory from concealing non-compliances (like overtime records or child workers). Inform the factory that an audit will occur and what documentation to prepare, but the exact date for social audits may be withheld until 1–2 days before.
Documentation the factory should prepare
Request the factory prepares: factory registration and licence documents, ISO quality management certificates (if held), workforce records (headcount, employment contracts, payroll), working hours logs (minimum 3 months), safety inspection records, effluent treatment compliance documents, and any existing audit reports from the past 2 years. A factory that struggles to produce these documents has record-keeping gaps that the audit will surface.
Step 4: Conduct the Audit Checklist
Quality audit checklist items
A quality audit checklist for a textile factory covers: • Production capacity: actual looms/machines vs claimed • Machinery age and maintenance records • Raw material storage conditions (humidity, temperature control) • Dyehouse: chemical storage, process documentation • In-process inspection stations and defect logging • Final inspection area: lighting, measurement equipment, AQL sampling table • Packing area: carton quality, labelling procedures • Sample retention policy • Non-conformance reporting system
Social compliance checklist items
Key social compliance checks: • Working hours (must not exceed 60 hours/week or local legal limit) • Overtime records match worker interviews • Wages at or above local minimum wage • Age verification records for all workers • Freedom of association (workers' right to organise) • Fire safety: exits, extinguishers, evacuation plan, last drill date • First aid provision • Personal protective equipment availability • Grievance mechanism availability
Step 5: Review the Audit Report
Understanding audit report structure
A third-party audit report contains: executive summary with overall rating (A/B/C or Pass/Minor/Major/Critical), factory profile and capacity data, findings listed by category with severity rating, photographic evidence, and a corrective action request (CAR) section for any findings. Read the executive summary first, then all findings rated "Major" or "Critical" before reviewing Minor findings.
Interpreting severity ratings
Finding severity levels: • Critical: Immediate risk to safety, law violation, or zero-tolerance issue (e.g. child labour, fire exits blocked). Requires immediate corrective action before any business continues. • Major: Significant non-compliance that poses risk to quality or worker welfare. Requires corrective action within 30–60 days with evidence. • Minor: Process or documentation gap with low risk. Corrective action within 90 days. For social audits: any Critical finding is an immediate disqualification for most retail brand supply chains.
Step 6: Issue a Corrective Action Plan
The Corrective Action Request (CAR) process
After reviewing the audit report, issue a Corrective Action Request to the factory for each non-compliant finding above Minor severity. The CAR should specify: the finding description, severity rating, required corrective action, and deadline for evidence submission. The factory responds with root cause analysis, corrective action taken, and photographic or documentary evidence. You or the audit agency verify the evidence and close out the CAR.
Follow-up audit
For Major findings, schedule a follow-up or "closure audit" 60–90 days after the initial audit to verify corrective actions have been implemented. This is typically a shorter, lower-cost audit (2–4 hours vs a full-day initial audit) focused only on the open CAR items. For Minor findings, documentary evidence is usually sufficient — a physical follow-up visit is not required.
Frequently Asked Questions
What are the main types of factory audit for Indian textile suppliers?
The three main audit types are: (1) Quality audit — assessing the factory's ability to produce your specification consistently; (2) Social compliance audit — checking labour rights, wages, working hours, child labour, and safety; (3) Environmental audit — covering effluent treatment, chemical management, and water compliance. Many buyers commission a combined quality + social audit in a single visit to reduce cost and disruption.
How much does a factory audit cost in India?
A standard single-day factory audit in India (quality or social) through SGS, Bureau Veritas, Intertek, or QIMA costs $300–600 depending on scope and factory location. Combined quality + social audits cost $450–750. Follow-up closure audits are typically $150–250. Prices include the auditor's travel within 50 km of the factory — remote factory locations may incur a travel surcharge.
Can I conduct a factory audit remotely without visiting India?
Yes. Third-party audit agencies (SGS, Bureau Veritas, Intertek, QIMA) conduct the on-site audit on your behalf and deliver a written report within 5–7 business days. QIMA also offers a live video streaming option where you can watch the audit in real time. Most buyers commission remote third-party audits for new supplier qualification and reserve personal factory visits for strategic suppliers or when managing complex issues.
What are the red flags in a factory audit report?
Critical red flags: fire exits blocked or locked, no fire extinguishers or last inspection overdue, child workers found, workers paid below minimum wage, forced overtime with no records, no effluent treatment plant or ETP not functioning, no personal protective equipment in dyehouse. Major red flags: production capacity significantly below claimed, no in-process inspection records, high defect rates in recent production samples, corrective actions from previous audits not addressed.
How frequently should factory audits be conducted?
For active supplier relationships, annual social compliance audits are standard for most retail supply chains. Quality audits are typically conducted when qualifying a new supplier, after a significant quality failure, or when a supplier introduces new production processes. WRAP and SA8000 certifications require annual third-party audits as part of their certification maintenance. If an audit reveals Major findings, a follow-up audit within 90 days is recommended.
Audit Anabyn Before You Order
Anabyn welcomes third-party factory audits by SGS, Bureau Veritas, Intertek, or your preferred agency. We are OEKO-TEX certified and GOTS audit-compliant. Contact us to schedule a quality or social audit visit.
Schedule a Factory Audit