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‘Large capacity addition in a short span of time, is pressuring denim industry’

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Sharad Jaipuria, the CMD of Ginni International is also the President of Denim Manufacturers Association of India, where most of India’s denim fabric manufacturers are members. Optimistic about domestic denim industry Jaipuria is also wary of too many new players coming into the fray. He speaks to Fashionatingworld about the challenges facing the Indian denim industry.

What are your business expectations from the oncoming Festive/Winter season and in the long term say next two to three years?

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Denim production in India is growing at a CAGR of over 15 per cent per annum and presently India has a capacity of 1.3 billion meters of denim fabric. Also many new denim mills are coming up and expansions is taking place. This is likely to cause pressure in the domestic denim market. We expect demand for denim to grow at 12 -15 per cent for the next 2-3 years. With changing lifestyles, jeans are becoming popular in small cities and villages. Mills that are vertically integrated and focus on development and customers will continue to do well. We at Ginni Intl are concentrating on innovation, customer service and exports to stay competitive.

Give a peek into your product basket. What are the new products to be added?

Our product basket ranges on weight category between 5.0 oz.-14 oz, which is suitable for men, women and kids’ wear The products are a mix of spandex and non-spandex made of cotton , cotton-Tencel , dual core , poly viscose, yarn dyed etc. The customer today is very aspirational and therefore, we have to continuously add new qualities to our products. We have invested heavily on finishing and are offering denim finishes with peach, overdyed, brushed, coated, combination of two finishes and other chemical and mechanical finishes. Also, we are adding a printing facility soon. We are also innovating in weaving with various knits and dobby designs.

What is your capacity, current market size, in terms of volume annual growth rate?

Our present capacity is 28 million meters per annum in denim fabric, which is around 2.15 per cent of the country’s capacity of 1.3 billion meters. We make value added denim/premium denim fabrics only. In terms of distribution across channels : domestic RMG that includes brands/manufacturers/garmenting sector, manufacturer exporters make up 80 per cent; fabric exports (direct or merchant export) make up 20 per cent.

In terms of products, which kind of fabric is more in demand in domestic garment industry? What are current international trends?

The general demand is in comfort fabric with good stretch having variation in knits and dobby designs with different finishes.

Large capacity addition in a short span of time is pressuring denim industry

 

India’s RMG industry has evolved a lot over the time, how do you focus on this segment?

We have a separate team to handle the domestic market, brands and exports. Presentations are planned, as their timing would be different from other channels. Our product development team develops products for exports, brands and domestic market separately for Spring/Summer and Autumn/Winter based on the feedback of our marketing team.

Do you have any major points of attention concerning this sector?

Large capacity is coming up within a short span of time which is putting pressure on denim industry. Also, exports growth is slow as large customers and retailers want packed garment and not fabric. India, unfortunately, has lost out in the race to have large scale organized garmenting like Bangladesh, Vietnam, Sri Lanka, Pakistan etc.

What kind of challenges are being faced by the domestic RMG sector now? The growth of RMG sector is complementary to denim fabric. More the growth in RMG, more the production of denim fabric as it helps in value addition.

 
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