IMPRESSIONS from a Cross-section

Sector Pulse
Mr. Ravi Kant
Mr. Ravi Kant
President - Strategy & Operations
Dhananjai Apparels P Ltd. - Eteenz

Company Details

Business Area:
Kids wear brand
Pan India


According to you how is the present state of world RMG market? What is Kids wear's contribution to potential of the garment sector?

The RMG market has never been so dynamic in its history. A couple of decades back it was primarily an exports oriented market with little interest in domestic sales. The transition slowly engulfed the Ready to stitch (RTS) business. Currently the RMG market is poised towards growth as well as consolidation. While one set of retailers are looking at expansion in Tier II and III cities and tap its ever burgeoning middle class population, there are existing retailers who are struggling hard to meet expansion targets due to both declined top lines and liquidity challenges. Opening of FDI is opening a mixed bag of reactions from all quarters. On one hand, where it offers to provide much desired liquidity to existing players for expansion and also bring best practices from around the globe, skeptics are still worried about the difference in level playing field for small retailers. 

It’s anybody’s market now. We are witnessing some stake sales as well as total collapses. We are also witnessing new entrants both - Indian as well as international biggies. What matters is how strong your fundamentals are. A robust supply chain, right working practices and sound liquidity can play a significant part in the way this RMG market will unfold its new chapter. 

The current apparel market is pegged at about Rs. 1,710 billion. Of this, about 15% is Kids Wear valued at Rs. 300 billion. The branded Kids Wear however is minuscule at about Rs. 30 billion. The rest 90% is all unorganized. The current contribution is not much to the overall garment sector, if we consider the sheer population between ages 0-14 years. Also, given the fact that the frequency of purchase is much higher as we go down the age groups, there is large untapped potential. There isn’t much difference in value of merchandise between grown-ups and kids, as the difference in consumption of raw materials (fabric) is largely compensated by the large amount of value additions required in kids garments. 

The consumers have now become much aware, be it fashion, products or pricing. The internet penetration along with proliferation of TV and social media has increased the awareness of consumers to a new paradigm now and the state is only going up.

However, Indian consumers always keep in mind comfort as seasonality and hot weather plays a pivotal role here. We generally lag the western markets by a year. Most Indian consumers are not known for fashion innovators or early adopters. We generally fall thereafter in the fashion cycle.


Published on: 12/03/2012

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

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