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Interview with Rinkesh Agarwal

Rinkesh Agarwal
Rinkesh Agarwal
Chairman & CEO
Yadu Nandan Fashions
Yadu Nandan Fashions

Online Markets Have Boosted the Saree Industry
Surat holds a major share in the Indian saree manufacturing industry. Rinkesh Agarwal, Chairman and CEO of Yadu Nandan Fashions, a Surat-based manufacturer and exporter of sarees, talks about the vast saree industry with Fibre2Fashion.com

What is the size of saree industry in India? How large is Surat's share?

The textile and apparel industry can be broadly divided into two segments-yarn and fibre, and processed fabrics and apparel. India accounts for 14 per cent of the world's production of textile fibres and yarns (largest producer of jute, second largest producer of silk and cotton and third largest in cellulosic fibre). India has the highest loom capacity (including handlooms) with 63 per cent of the world's market share. The size of the saree industry in India cannot be perfectly calculated, but it is estimated to be around $20 billion. Surat could account for around 70 per cent of this market share.
 

Do you see the growth of western wear in India as a roadblock to the growth of the saree industry in India?

Yes, definitely. Increasing demand for westernwear is blocking the growth of the saree industry. But it is a part of life, and people will change according to time. We cannot block anybody's thinking and wish on what they want to wear. The demand for westernwear is growing day-by-day, but most of the materials from which these outfits are made are from Surat itself. So if there is need, we will make westernwear too.

How is the demand for sarees from the overseas markets?

There is a huge demand for sarees in the overseas market, because of a large number of Asians living there and the craze of sarees among foreigners. The growth of the online market has made it easy for them to buy a saree. This has led to a huge growth in the overseas market.

Which is the biggest manufacturing hub for sarees? In which regions of the country is saree retailed the most?

There are many cities that manufacture sarees like Jaipur, Kolkata, Benaras, Bengaluru, Hyderabad and many more. But Surat is the biggest hub for sarees. There are many regions in India where it is retailed. In southern India, Chennai, Madurai, Coimbatore, Bengaluru and Hyderabad are the major cities in terms of saree retail sales. Likewise, Mumbai, Pune, Nagpur and Aurangabad are the top cities in western India; Indore, Raipur and Gwalior in central India; Kolkata, Patna, Ranchi and Bhubaneswar in eastern India; and Delhi, Kanpur, Jaipur, and Lucknow in northern India. Sarees are, however, not much in demand in northeastern India.

Which latest trend is dominating the saree industry today?

The advent of online markets has boosted the saree industry. Our reach has now widened to many new states and cities. We are able to sell all types of concepts and designs. By hiring a good team of designers, we are able to make different types of unique products-which is the latest trend in the saree industry of India.

Have sarees been successful in taking the Indian fashion industry to a global level?

The Indian fashion industry knows the demand and curiosity for sarees on a global level, as a lady looks totally different in this attire. It has been successful in making our industry shine.

How do you view the tussle between online retail and brick-and-mortar stores? How far has online retailing been successful for you?

As we all know, the online market is growing day-by-day. It has been very useful for those who are making right quality products at the right price. Only the one who knows the concept of online selling should sell through the online market, because there are so many advantages and loopholes. It is assumed that return of products sold online, particularly sarees, is 30 per cent- which is huge. Retail stores are definitely affected, because the customer gets a huge amount of discount. Also, it removes all barriers like wholesalers, agents and retailers who directly affect the price of the product, which in turn benefits the customers.

What are the challenges facing the industry? What is your five-fold remedy to overcome them?

The challenges we are facing are the laws and regulations of textile authorities, where there are no rules for payment conditions, eligible buyers and suppliers, amount of production, etc. Our five-fold remedies to overcome them are: • Low-priced products with good quality • Fixed payment conditions so that only genuine customers work under our roof • Low production so that there is no stock loss • Payment rotation so that we can use it many times with less amount of money • Supply chain management to make products at the right time to avoid high expenses and market fluctuations.

Who are your competitors? What is your strategy to tackle competition?

Everyone in the market is our competitor, because every day there is demand for new products, new ranges and changing customer choices which are difficult to predict with 100 per cent accuracy. These days marketing factors and rate factors have also gone up as the customer believes in brand, quality and rate. So, we have to concentrate on these five major factors: • Quality • Rate • Marketing strategy • Brand image • Market surveys
Published on: 21/03/2016

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.