Home / Knowledge / News / Textiles / Indian denim fabric sector on an even keel
Indian denim fabric sector on an even keel
Jun '11
The Indian denim fabric manufacturing sector has been able to brave the storm of the rise and subsequent volatility in raw cotton prices. This has been made possible, due to an improved product mix and better capacity utilizations.

However, the continued rise in retail prices could spoil the party for the Indian denim producers.

“Looking into the sharp decrease in prices of raw material, i.e. cotton in past few weeks, there will be reduction in denims prices in coming times and the prices will ease out. We don't see any problems in price as well as supply”, says Mr Utsav Pandwar, Finance Controller - Aarvee Denims & Exports Ltd.

Mr Rajiv Dayal, MD – Mafatlal Denim says, “The demand is not slackening in fabrics but it is slackening in retail. The denim fabric manufacturing companies supply fabric to Indian brands, garment exporters and also export. If the retail margins go down, the denim fabric manufacturers will focus more on exports because globally the market is very large.

“Indian denim fabric market size is only 600-650 million meters per annum but the global denim market size is five billion meters per annum. So, they have the opportunity of exporting fabric also. It is not easy and correct to link what is happening in Indian retail to the fabric segment. Indirectly, yes but one cannot link them completely.

“Out of the 650 million meters Indian denim fabric market, domestic market is only 400 million meters while exports come up to 200-250 million meters. So there is a sizeable element of export as, Indian denim producers are also competitive globally”.

When asked if continual price rise at retail level would result in narrowing of margins and slowing growth, Mr Dayal replied by saying, “It's a very volatile market. One cannot say that the margins are going down because the cotton prices have also dropped. It is a combination of factors.

“Last year the scenario was different; cotton prices went up and subsequently the selling prices also went up. Whereas, now the people are concerned about volumes and cotton prices have also dropped. So it is not that the profitability may be affected, there are too many factors involved”.

Explaining further, he said, “Basically there are two dimensions. The fabric industry and the garment and retail industry. Both are separate. The denim fabric business moves depending on the cotton price, availability and supply & demand. The second is what is happening in retail or what is happening in brands and what is the profitability of the branded apparel companies & the retail companies”.

Despite the challenges, Mr Pandwar expects the current fiscal to be satisfactory, except the first quarter, in which the inventory of high cost cotton is expected to impact the performance.

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 18th Feb 2017

Bangladesh apparel sector has 95% local investors: BGMEA

Over 95 per cent of the total investors in the Bangladesh apparel...

Textiles | On 18th Feb 2017

Smriti Irani resolves cutting of carpets issue at ports

During a meeting held with stake holders of the carpet weaving...

Apparel/Garments | On 18th Feb 2017

Andhra Pradesh inks MoUs to set up 12 apparel units

At the recent CII Partnership Summit held in Hyderabad, memorandum of ...

Interviews View All

Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search