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Mafatlal Denim aims to recapture market lost to China
Nov '08
Amazingly, Indian denim industry is moving ahead at a full pace, even when the textile sector is troubled with both internal and international problems.

Apparently, devaluation of Indian Rupee and nearly 40 percent production cut in China, have helped Indian denim to grow its profit margins by 7 to 8 percent, with most of the facilities working at full capacity.

Industry insiders are pleased to observe the revival of denim industry, which, since 2006, was going through a rough phase.

“Production cut down in China has given advantage to Indian Denim Industry. China's competitiveness is reducing due to their appreciating currency and increase in the costs of power and labour. Several mills have curtailed their capacity. Hence, this presents an opportunity for Indian manufacturers to increase their global market share, by capturing the market lost to Chinese producers”, told Mr Rajiv Dayal, Managing Director, Mafatlal Denim Ltd, in an exclusive interview with Fibre2fashion.

Speaking on the current scenario of the denim market domestically and internationally, Mr Dayal stated, “The denim markets in the US and Europe have slowed down due to the economic turmoil that they are going through. Markets in Asia and India are still expanding, though at slower single digit growth rate. Overall, the global requirements would be only marginally higher than the last year.”

Discussing Company's strategies to take maximum advantage of the situation, the Managing Director divulged, “Several brands are now keen to source fabrics from India and spread their sourcing basket in order to reduce the risks and uncertainties prevailing in China and other countries like Pakistan and Turkey.”

Mafatlal Denim has been a reliable producer of specialized denim fabrics for the last decade, and has proved itself as an ideal supply chain partners for brands, who wish to source fabrics from India.

Mafatlal Denim, a flagship company of the Arvind Mafatlal Group, will also present its new Fall Winter 2009 collection to current and potential brands in India, Asia, US and Europe, which include differentiated and fashionable denim products. The Company has also started developing products for our Spring / Summer 2010 collection.

Fibre2fashion News Desk - India

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