Aarvee Denims and Exports Ltd (ADEL) is a leading global player in the textile industry. Being backed by experienced promoters, the company is spreading its wings all over the globe at a very fast pace. Arora Group, which is involved in the marketing of denim for over 35 years and VB Group which has been involved in textile trade for over 50 years are the forces behind this dynamic company. More than five decades of experience, well qualified human resources and state of the art production units have made the Company the second largest denim manufacturer of India. ADEL's marketing model is unique and extremely efficient, with an emphasis on relationship-building and product innovation and quality. Almost 80% of Aarvee's business comes in the form of repeat orders, an admirable feature in an industry where product differentiation is extremely difficult to establish. ADEL offers over 200 value-additions to denim fabric, and has set-up an internal Quality Control System in all its plants. Mr Ashish Shah is the Managing Director of ADEL. With vast experience of the textile industry spanning over 30 years, Mr Shah is a Bachelor in Commerce from H L College, Ahmedabad. He has also done Management Development Programme (Small and Medium Industries) from IIM Ahmedabad. In a tête-à-tête with Face2Face team, Mr Ashish Shah provides an insight on Indian Denim industry.
Aarvee Denim is the second largest producer of denim in India. What makes it unique and so popular?
Aarvee is not only the second largest producer of denim fabric in India but also the denim producer with the lowest cost and highest market share in the domestic market and exporting approximately 25% of its production.
Indian denim is gradually making its niche in global markets. In your opinion, what are strengths and bottlenecks in its path of progress?
Strengths: • Ample supply of cotton • Easy availability of technical and skilled manpower • Latest technology, as most of the plant installed in India has been installed in mid 90’s or early 2000.
Bottlenecks: • Government controlling the cotton prices by announcing 40% higher Minimum Support Price (MSP). The higher MSP will enhance the RMC and will make Indian denim producer less competitive in the international market. • Higher power / energy costs. • Higher interest costs. • Lack of strong support infrastructure for exports.
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.