Mr Piyush Chandarana
Soma Textiles and Industries Ltd
Denim fabric, Cotton Piece dyed fabric, Denim Jeans garmenting, Ring and Open end yarn
INR 3.5-4.0 billion
Denim fabric-24 mn metre/year, Cotton-piece dyed fabrics-12 mn metre/year, Jeans-2.4 mn pieces/year
What is your take on the growing potential of denims in the Indian domestic market and how do you look at the surplus capacity troubling the Indian denim fabric industry?
Per capita consumption of denims in the western world is around 5–7 pair of jeans,
, it stands at just 0.50. On the other hand, organized retail contributes to 85%
of the business in
, while for
(apparel category) it stands at just 14-15%.
With the ever growing cool and casual consumer attitude, coupled with product versatility,
fashion quotient and wearer comfort, denim consumption is going to grow in
. With FDI approval for single brand retail, the ever increasing per capita income
and Friday dressing as the new avatar of formal attire, overall it’s going to be
very interesting phase for denim industry on a medium to long term basis.
Indian denim fabric manufacturing annual installed capacity has reached to the level
of 950 million meters and at the same time the domestic market has been growing
at an annual rate of 12–15%. However exponential capacity expansion in last couple
of years has overtaken the annual growth of the domestic market and has created
time bound surplus capacity, which is close to 20–25%.
Adding fuel to the fire, even Bangladesh
denim fabric manufacturing capacity expansion has been rampant.
has historically supported us, to sail through the lean and thin phase of the denim
business cycle. Europe is still in the middle of recession while
is on its way to recovery. In light of the above, business deliverables like product
innovation and reengineering, operational excellence, cost optimization and efficient
marketing initiatives shall play key role for creation of sustainable business module.
Published on: 14/06/2013
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.