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Interview with Durga Prasad Chalavadi

Durga Prasad Chalavadi
Durga Prasad Chalavadi
Managing Director
Sai Silks Kalamandir Ltd
Sai Silks Kalamandir Ltd

India is experiencing a trend of normalising traditional wear
Kalamandir is a leading ethnic fashion brand in South India, specialising in sarees and catering to all types of special occasions. With nine stores across Telangana, Andhra Pradesh, and Karnataka, Kalamandir prides itself on understanding customers’ needs and providing them with the best quality and within the budget. Kalamandir brand is owned by Sai Silks Kalamandir Ltd, which was established in 2005. Its team of weavers, artisans, and designers ensures exceptional and exquisite designs for every customer. The company’s Managing Director Durga Prasad Chalavadi speaks to Fibre2Fashion about Indian women’s ethnic wear, particularly the saree segment.

How would you describe the current market for ethnic wear in India? Has the market grown or shrunk over the years?

In the whole of India, where the South ranks number one, East India with 19 per cent share ranks second, followed by West and North India contributing 16 per cent and 15 per cent to saree sales respectively. The overall market in India is estimated to have crossed the ₹1 lakh crore mark (about $15 billion) considering the size of the women population in the country.
The largest category of women’s clothing in India continues to be ethnic wear (sarees), notwithstanding the popularity of western and fusion clothing. Much of this is attributed to the increase in the women workforce in the country. Although there has been an increase in demand for formal western clothing, particularly in tier 1 cities, formal ethnic wear continues to be the preferred choice for most women in the country. The segment of women’s ethnic clothing dominates the Indian market in considerable part. In the future, we anticipate that this market will continue to expand.
We have witnessed increased demand in the occasional and wedding wear segments in the south Indian diaspora.
India is experiencing a trend of normalising traditional wear, even in the workplace. The Indian economy has grown from $1 trillion to $3.4 trillion over the years, and the Indian diaspora, along with Prime Minister Narendra Modi's leadership, has encouraged people to embrace their roots. As a result, the ethnic wear segment has experienced significant growth over the years.
Disposable income and digital trends have had a significant impact on purchasing patterns in ethnic wear. People are making quicker purchase decisions, and the desire to avoid repeating sarees multiple times is contributing to the growth of ethnic wear, particularly in the occasional wear segment, where we see higher average selling prices (ASPs).
Overall, the market is growing at a good CAGR year over year since the last few years and we see a bright future in the next few decades.
 

What is the market share of Sai Silks in India?

Sai Silks Kalamandir Limited (SSKL) with a turnover of ₹1,132 crore in FY22 emerged as one of the leading saree retailers in the county.
Researchers and analysts have not been able to accurately predict the size of the Indian saree industry and its growth, as it is heavily dominated by the unorganised players. However, sarees comprise substantial portion of the women’s ethnic wear market. The saree industry is highly fragmented and unorganised with an informal supply chain that just cannot be fathomed.
Understanding the potential that this industry has, we now see big players like Tata, Reliance and Aditya Birla Fashion & Retail (ABFRL) foraying into the saree market.

Which are your major markets in India and abroad?

According to our current offline store chain presence, most of our revenue comes from Andhra Pradesh and Telangana, followed by Karnataka and Tamil Nadu.
Our market analysis and data suggest that we still have a lot of opportunity in expanding to these south Indian states. We believe that strengthening our expansion in Tamil Nadu and current states will give us good opportunity to grow in the next decade.
The expanding consumption trend in the four south Indian states of Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu has been successfully embraced and profited by SSKL. Through our e-commerce channels we are able to cater to the needs of our international customers as well who are located around the globe where the Indian diaspora exists.

What is the USP of SSKL?

With a focus on spreading India’s vibrant culture, traditions and heritage through a diverse range of products, SSKL operates through four different format stores, namely Kalamandir, Mandir, VaraMahalakshmi Silks, and KLM Fashion Mall, as well as through e-commerce channels that include its own website and other online e-commerce marketplaces.
The diverse range of products offered include (i) various types of ultra-premium and premium sarees suitable for weddings, party wear as well as occasional and daily wear; (ii) lehengas; (iii) men’s ethnic wear; (iv) children’s ethnic wear and (v) value fashion products comprising fusion wear and western wear for women, men and children.

What are some of the leading consumer trends in ethnic wear?

At least 33 crore Indian women (out of the total female population of about 67 crore) spend an average of ₹3,500-4,000 a year on buying sarees for occasions including festivals and weddings. The growth in the wedding and festive market segment is being driven by the saree category with a 41 per cent share of this segment valued at ₹23,200 crore in FY20, as per a report by Technopak Advisors.
Ethno-fusion has also been one of the most liberating fashion trends for Indian women.

What kind of fabrics, sarees, and heritage weaves are in demand in ethnic wear?

Sarees originate from more than 100 cities across India, from Rajasthan to Kolkata and from Varanasi to Kancheepuram. Each saree is woven based on the art form that originates from its place of origin. Each saree has a unique blend, design, and fabric that defines it. The latest trends also include fusion sarees that blend multiple origins by attaching borders, body, etc.
Ethnic wear has undergone significant transformation today due to its increased demand. The term ‘sustainable fashion’ has become popular as women become more conscious of their environment. The popularity of sarees has also increased as more young people choose to experiment with Indo-western fashion.

What strategy that SSKL follow to expand its store portfolio and product range to cater to different target segments?

By leveraging its experience in selling ethnic wear, SSKL has over the years expanded its store portfolio to four formats, each offering a different set of products catering to the respective target segments while continuing to expand its product range to meet the demand of different target segments.

What is your growth story for the last two years and what can be expected in the next two years?

The company has emerged as one of the leading saree retailers with a turnover of ₹1,132 crore in FY22. The company has recently got nod from SEBI to raise funds from the market. With the growth capital in hand, the company will strengthen its store count in the next two years and will expand its footprint.

What are your plans with respect to physical store expansion in India?

Current store count stands at 53 stores with around 6,00,000 sq ft. SSKL intends to open approximately 25 new stores across multiple states, and two new warehouses in Hyderabad and Chennai for supporting further expansion.
The company plans to further penetrate in stronger markets like Andhra Pradesh, Telangana and Chennai, and venture into new locations based on the demand scenario.

Published on: 21/02/2023

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.