News Flash

Global denim market snail paced, Rajiv Dayal

02 Jun '07

4 min read

While speaking about the company's stake in the present situation the Managing Director said, “We at Mafatlal Denim manufacture and market high-quality and differentiated denim fabrics. Recently we increased our denim fabric manufacturing capacity from 10 MMA to 20 MMA, of which about 50 Percent is for the domestic market. We are adding 8, 400 ring spindles, 310 open- end rotors and 52 automated shuttleless looms to our existing capacity.

Post expansion almost 80 Percent of the company's capacity will be producing value-added ring spun denim and the rest will be basic open-end varieties. With all these expansions in place, the company would have approximately 5 Percent market share in the Indian denim market”.

When fibre2fashion asked about company's plans of mergers, joint ventures, off shore production facilities, Rajiv said, “MDL, after increasing its denim fabric capacity to 20 MMA, is now evaluating manufacturing of 'full package' garments for its global customers. Basically, we will be converting the fabric into a garment of customer's choice and supplying them. The garmenting division will be independently managed with a separate team of designers and washing and processing facilities".

He further added, "We would, definitely, keep our options open for potential collaborations and for off-shore production facilities as well as for being a part of the supply chain for US / EU brands”.

Regarding Asian foray into European markets and its effects on Indian denim producers, Dayal opines, “Indian manufacturers face competition in European markets from other Asian producers like Pakistan, Bangladesh and China. Out of these India and China are the growth drivers.

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