Mr. Vikram Rao
Group Executive President Madura Garments
Madura Garments is a part of Indian Rayon and Industries Limited a flagship company of the Aditya Birla Group. India's leading apparel and retail company owns/ have perpetual license for premier brands like Louis Philippe, Van Heusen, Allen Solly, Allen Solly Women's Wear, Peter England, Byford, Elements and SF Jeans.
What is your reaction to the Budget proposals for the textile industry?
"Continuing the focus on development of the textile sector in the past budgets, the proposals of Budget 2005-06 have paved the way for long term growth of the textile industry. Reduction in the duty on textile machinery & capital subsidy for the textile-processing sector would speedup the capex plans of the textile manufacturers by reducing the funding costs while reduction in excise duty on Polyester Filament Yarn & duty on textile fibres, yarns & intermediates would make products cheaper & competitive in the export markets. The textile industry would see world-class capacities being set up in sectors which have been freed from the reserved category which would be catering to the increasing demand from the global market.Overall, the measures would enable the industry to gear up to grab the vast opportunities in the global scenario."
What is your outlook for the domestic readymade garments market, after 2005?
The readymade domestic readymade garments market in India is expecting a boom with RMG segment increasing its share in an increasing apparel market. The Indian apparel market is estimated at Rs.80,000 Crores at the end of year 2004 and had witnessed a growth rate of 13% year after year. The growth in the RMG segment would be retail driven with organized retail touching a base of Rs.30,000 Crores and increasing its share to 4% of total retail. The apparel companies are all geared up to grab a share of this pie and are increasing their capacities. The market would see better products at better prices from the apparel companies. The share of premium & super-premium categories has been increasing at a much faster rate as compared to the overall apparel market and would continue to do so as the base is still very low. But the trend is encouraging and is a reflection of growing prosperity in the economy. The domestic market would also see many international brands coming to India in the next few years and offering similar range as they offer in the developed countries. Overall, the domestic readymade garments market is having a very positive outlook after 2005.
What would be your company's main focus in the next couple of years?
Our company is looking to consolidate its position in the domestic market and increase its presence in the international market in both branded exports and contract exports. We are looking forward to have a profitable growth in all the segments we are present in. Our brands have been growing at a rate of 20 - 30 % and we foresee the same to continue for the next few years. We have plans to achieve this by strengthening our retail presence. Organized retail is increasing its share and with more brands coming to India offering world-class retail experience, retail has become one of the critical growth drivers of the company. However, we see great value in retaining a multi-channel distribution structure. Our company is also focusing on making innovative product offerings to the market. IN addition to our premium brands Louis Philippe, Van Heusen, Allen Solly and SF Jeans, we expect great value to come from our popular brand "Peter England"
There is a growing demand for brands at lower price. What impact does this have on your brands that cater to the upper segment?
The growing demand for brands at lower price is a result of a growing readymade apparel market and would be having a positive impact for our brands catering to upper segment in the long run. In the Indian apparel market, the trend being witnessed is that people is migrating from unbranded products to economically priced branded segment and from economically priced branded segment to premium segment. The premium & super-premium men's-wear market has grown at a rate of 20% as compared to overall menswear market growing at 12% (KSA Technopak study).
Published on: 26/07/2005
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