Chairman and Chief Executive Arvind Mafatlal Group
What is the road-map of your company to boost its denim segment? Additionally, how do you see denim market globally and rural as well as semi-urban areas?
Even in these tough times, the denim market globally is about five billion meters, annually and growing at about two-three percent per annum.
The US and EU markets are flat, but the emerging markets are growing at between five and 15 percent per annum, with China and India are being the aggressive growth leaders.
The Indian denim markets have been growing at a compounded rate of around 10 percent over the last decade and are expected to continue growing at 10 percent per annum over the next five years. The reasons for this rapid growth include a rapidly growing economy, which results in surplus disposal incomes. Interestingly, this growth is probably higher in the rural and Tier 2-3 cities!
Besides, India has an excellent demographic profile, with over 40 percent of consumers being in the age group of 15 and 45 years, who typically would buy denim jeans and other products.
Mafatlal Denim Ltd. is a reliable supply chain partner for many global and Indian brands since 1997 and it specializes in fashion and value added denims like slubby ring, coated and coloured denims.
Our strategy is to understand consumer requirements and fashion trends and to develop “fashion – forward” collections. For example, we are now showcasing our Fall-Winter 2013 collection.
Going forward, we plan to increase our denim capacity from 20 to 30 million meters per year in a phased manner.
How do you see the market globally as well as its export scenario? Further, where do you envision the market stability in its demand?
The US and EU markets are still difficult, as consumer spending is still being constrained by limited disposal incomes. However, we expect demand to start improving in 2013.
Furthermore, there is an opportunity for Indian textile and apparel exporters to explore other markets like Africa, Vietnam and South America.
Besides, China is becoming expensive for textile products, due to a strong currency and increasing costs. This also opens a window for Indian exports.
I expect global demand to improve and stabilize from 2013-14.
Which essential measures are required to increase the value chain productivity of your textile segment? Please share your outlook.
AMG group’s textile operations spread across the value chain viz. spinning of yarn, weaving and processing of fabrics, branding and retailing.
The group is investing in new efficient machinery in the fabric manufacturing segment to become cost effective and make value added products .
We are also working with our customers, brands and retailers to offer a wide range of products like (denims, shirtings, school uniforms, voiles, bleached white fabrics, suitings, etc).
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