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'India needs to double its denim capacity by 2020'
26
Feb '16
India, one of the largest producers of denim, would need to double its denim capacity by 2020 said a speaker at the recently held two-day global summit on denims and jeans.

Denim industry in India has a healthy compound annual growth rate of 15 to 18 percent, said Deepak Chiripal, CEO, Nandan Denim, at the conference organised by Diagonal Consulting India (DCI) along with Confederation of Indian Textile Industry (CITI) at IIM Ahmedabad.

“Currently, feasible production capacity (in India) is 1 billion metres per annum considering 85 to 90 percent utilisation. Looking at the domestic demand, India will need to double its denim capacity in next 4 to 5 years,” added Chiripal.

The conference saw major denim fabric and apparel players as well as experts from within India and abroad deliberating over the future of denim industry, particularly in India. It focused on how Indian apparel scene can be improved so that Indian denim industry bags orders not just for domestic market but also that it becomes a global hub for branded denim apparel. The Indian denim industry is looking to increase its share of exports from its current 35 percent to 45 percent.

“Historically, denim has been one of the fastest growing apparel fabric segments, having grown by 500 million metres from 700 million metres in 2010 to 1.2 billion in 2015. Yet, there is a gap of another 300 million metres in India if the denim industry needs to tap its full export potential,” said PR Roy, chairman of DCI.

Gujarat is set to strengthen its position further as the denim hub of India with around 150 million meters per annum (mmpa) new manufacturing capacity added by 2020. This will be in addition to the existing capacity of 500 mmpa. “Around 4 to 5 new units are coming up in and around Ahmedabad which will add 50 mmpa of capacity. Surat too has six units of denim manufacturing with capacity of 100 mmpa. These firms plan to add another 20-30 mmpa in next few years,” informed Roy. (NA)

Fibre2fashion News Desk - India


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