Interview with Deepak Chiripal

Face2Face
Deepak Chiripal
Deepak Chiripal
CEO
Nandan Denim
Nandan Denim

We spend days trying to fix things that appear to be basic

The Indian denim industry is booming. Leading manufacturer Nandan Denim claims to hold 10 per cent share of the Indian denim industry and 1 per cent share of the global denim industry. Deepak Chiripal, CEO of Nandan Denim, shares his thoughts in an exclusive interview with Fibre2Fashion.com.

What is the size of the denim market in India? By what percentage is it expected to grow?

Denim manufacturing competence in India is around 1.2 billion metres of installed capacity that can physically deliver around a billion metres. This is expected to reach 1.6 billion metres by December 2016, considering projects under execution. Current domestic consumption is around 700-800 million metres, and that leaves around 200-300 million metres for exports. The domestic market has been growing at a whopping 15-18 per cent CAGR. Therefore, it is expected to hit 2 billion metres by 2020. International trade has been growing at around 3-5 per cent. By the strength of raw materials that we have built and inherited, Indian textiles are perhaps going to be a major beneficiary, with the largest cotton crop at disposal coupled with the Make-in-India drive. The domestic denim market is projected to register revenue of ₹27,200 crore by 2018 with a modest CAGR of 15 per cent due to major demand drivers such as: a. More than 65 per cent of the population is less than 35 years of age b. Retail penetration in Tier II, Tier III cities c. Rising footprint of e-commerce d. Higher disposable income e. Fashion consciousness f. Rising demand from untapped womenswear segment. Currently, 85 per cent of this consumption is from the menswear segment, 9 per cent from the womenswear segment and 6 per cent from the kidswear segment. The change in this demography poses huge growth opportunities. g. Growing preference of denim as workwear h. Per capita consumption of denim is 0.3 pairs per person in India in comparison with two pairs in China and eight or nine pairs in the United Kingdom and the United States of America, signifying immense growth opportunity. Looking at the above factors, domestic demand is expected to grow by leaps and bounds, much higher than the growth recorded in the past. However, import dependence on China for cotton can also foster export growth much above the international trade growth rate.

What percentage of the denim market for women would you like to claim for yourself?

The denim fabric meant for womenswear segment is expected to be light-weight, stretchable and a bit fancy, looking at the multiple functions that the gender is engaged in daily. Women, particularly in India, have multiple responsibilities. Therefore, the fabric they use is expected to be robust enough to support them apart from maintaining a relatively higher fashion quotient, unlike their gender counterparts elsewhere. The gender ratio in India is currently biased towards the menswear segment, and the same has been the case with the denim sector. Nandan, as a company, has full-fledged facilities to cater to the higher expectations of the womenswear segment. We would prefer to have almost 50 per cent of revenues coming from the segmental diversity. Having said so, we have to admit that the national average of denim consumption by women is less than 10 per cent of the gross domestic sale of denim. Nandan is much ahead of national average. We are focused on building higher functional denim for women. We expect to garner a larger share of the growing pie belonging to this segment.
Published on: 21/12/2015

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.

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