Over the last five years, India’s denim makers have more than doubled capacity to 1.3 billion meters a year because of an abundance of cotton and subdued fibre prices. But lack of technological innovation among Indian manufacturers and the entry of international brands have forced almost a third of the country’s denim capacity to idle.
“With 42 mills in operation against 25 five years ago, India’s denim capacity has more than doubled to 1.3 billion meters. Of this, 30 per cent remains unutilised,” said Subir Mukherjee, Business Head, denim, Bhaskar Industries, one of India’s largest denim manufacturers.
Apart from serving the domestic demand for jeans, India’s manufacturers used to export denim to garment factories in Bangladesh. Now, denim factories have been set up in Bangladesh to meet local demand.
“We see enormous potential of growth in branded jeans,” said Rahul Mehta, President of the Clothing Manufacturers’ Association of India. Experts estimate 8 per cent annual growth in denim sales and 15 per cent in jeans over the next five years.
“Indians buy two or three pairs of jeans in a year against seven pairs in the US,” said Deval Shah, Business Head, Diesel & GAS.
“Indians should create their own brands as they understand Indian consumers better. Foreign brands are luxury ones limited to metro cities. India is gradually moving towards branding from labeling earlier. But, the average Indian business will have to shift to brand building for long-term profits in apparel,” said Mehta.
Anurag Asthana, Vice-President, product development and sourcing, Myntra Designs, said, “We are receiving the most traction in the value segment. The denim business will grow both online and offline.”
Source: Business Standard
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