Home / Knowledge / News / Textiles / Surplus capacity troubles Indian denim industry
Surplus capacity troubles Indian denim industry
16
Jan '13
Many denim producers in India, who have increased their production capacity in the past anticipating a rise in demand in future, are facing a problem of surplus capacity.
 
“Currently, the denim industry is facing a situation of over capacity because there is almost a thirty percent surplus in production,” states Mr. Aamir Akhtar, CEO, Lifestyle Fabrics-Denim, Arvind Mills, in an interview with fibre2fashion.
 
“Consequently, there will be a pressure on the manufacturers who are not producing differentiated products and at the same time on the markets of undifferentiated products as well,” he predicts.
 
Agreeing with the problem of surplus production in the industry, Mr. Rajesh Dudeja, the Founder of Denim Club India reasons, “After looking at the continuous profits in the balance sheets of other denim manufacturers and also by realizing that the slowdown did not affect the denim mills the way it affected the rest of the textile industry, many Indian businesses went in for setting up of new denim manufacturing units in the last couple of years.” 
 
“The clearly visible fast-expanding domestic demand was also a driving factor in capacity expansion and several mills added lines and increased production in anticipation of a further rise in demand,” he explains.
 
But Mr. Dudeja is hopeful that the situation will change soon. “Because of the decline in denim production in China and USA, many Indian mills, which had started witnessing a slight dip in demand recently, will again be in a commanding position and the denim prices might also see a rising trend in the near future,” he opines.
 

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Ikea

Textiles | On 26th Apr 2017

Ikea’s product sourcing from India to double by 2020

Ikea, the global home furnishing giant from Sweden, plans to double...

Textiles | On 26th Apr 2017

CITA to add insufficiently available fabric in CAFTA-DR

The Committee for the Implementation of Textile Agreements (CITA) has ...

Courtesy: SKF

Textiles | On 26th Apr 2017

SKF brings predictive maintenance for machinery to India

SKF India, a global supplier of bearings, seals, mechatronics,...

Interviews View All

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Robert Brunner
Devereux

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

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search