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Future of denim sector looks satisfactory - MD, Aarvee Denim

17
Feb '10
Mr Ashish Shah, MD, Aarvee Denims & Exports
Aarvee Denims and Exports Ltd started way back in 1988, which has grown in leaps and bounds, has emerged as one of the leading global players in the denim sector and is now ranked as the second largest denim manufacturer in India.

Presently, Aarvee has the capacity to produce 72 million meters of weaves, 30 metric tons of spinning yarn and 1.5 million pieces of readymade garments per annum. In order to give its clients “Nothing but the best”, it has installed the latest technologies which produce quality fabric expeditiously.

The management of Aarvee Denims has been extremely prudent in keeping costs under control and their operating cost structure is aligned to withstand the cycles of the industry. Aarvee has a well crafted expansion plan, wherein, it plans to achieve production capacity of 100 million meters within next three years. The company offers the widest possible variety of weaves and widths, thus saving client's precious time and efforts of sourcing material from multiple sources.

Fibre2fashion recently spoke exclusively to Mr Ashish Shah, Managing Director of Aarvee Denims. We began by asking him about current market situation of denim fabrics in the domestic as well as overseas markets, to which he said, “Current situation is good in domestic as well as overseas market and there is reasonable demand in both the markets, though recent increase of cotton price is cause of worry.”

Aarve Denim has recently ventured in to the field of apparel manufacturing and retailing. We asked him as to how they plan to differentiate themselves from others and what are their future plans for this venture, to which he replied by saying, “We plan to differentiate ourselves from others through our brand 'De-Extase' by delivering quality products, meeting consumer requirements and making it affordable to all classes of society. At present, we are successfully operating 75 De-Extase outlets across the country and are planning to increase it to 100 in next three months and to 150 by 2011.”

Recently an expert from the denim sector was quoted as saying that, more applications like salwars; saris etc. need to be introduced to achieve growth in the denim sector. We asked him if Aarvee Denims was contemplating something on parallel lines, to which he replied that there were no such plans on the anvil.

Next we asked him as to what were the bitter lessons learnt from the impact of the economic slowdown and the resultant slowdown and recessionary trends, to which he said, “We have kept our cost of production (fixed and variable expenses) down to ensure supply of quality product at most competitive prices and during last two years of recession our company has done well and our turnover has increased in 2008-09 compared to 2007-08, though no doubt there was a pressure on margin and profitability suffered heavily due to unexpected currency fluctuation.”


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