India has been exporting denim fabrics to various destinations around the world. The current capacity of Indian denim fabric manufacturing stands at over 1 billion mtrs p.a – though actual production quantities are lower due to various reasons. Major part of this production goes for domestic market or for domestic consumption for conversion into garments for export. However, there is also a good quantity which is being shipped directly in the fabric form to various countries around the world.
In this report from our data section, we will cover :
a) The quantities that have been shipped by Indian companies to overseas markets in last 12 months – Oct’13 to Sept’14
b) Average prices of such exports for all the four quarters.
c) Most important 5 markets to which these exports are being made currently . An indepth look into the quantities being shipped to these markets and the trends thereof.
d) Average prices of such exports to these markets.
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We look below at the total quantities that have been shipped out by Indian companies out of India during the period Oct’13 to Sept’14
Total Exports of Denim Fabrics From India Oct’13 to Sept’14
From the above data from our Data section , we can note that the actual shipment of denim fabrics has increased considerably in last four quarters. Whereas in the Oct-Dec’13 it was about 24 million mtrs, it is now about 32 million mtrs in July-Sept’14 period. The shipments have been increasing as we see an increase in production capacities with different mills in India and also with new mills coming up. The domestic market, though big, is unable to absorb all the production and the companies have to find a way to increase their exports.
The average prices, when seen as a whole are more or less same at about $2.80 with a few cents here and there. So we do not see much movement in prices .
Now lets see how Indian exports fare in different markets. Lets look at exports to Bangladesh first –
Shipments to Bangladesh
The exports to Bangladesh in the last one year are about 55 million mtrs. The average price is over $3.00/mtr which is higher than the average price of all exports which is about $2.80/mtr. Bangladesh is taking about 40% of all Indian denim fabric exports and is the number one market for Indian exporters.
Shipments to Egypt
Egypt is another good market for Indian fabrics. Though not as big as Bangladesh, it still imported about 8 million mtrs from India in last one year . The average prices are highly fluctuating and going from $2.46 to $3.00 – indicating that increase in volumes results in lower prices.
Shipments to Colombia
Colombia is an emerging market for Indian fabrics. From very low volumes last year, the exports touched 2.7 million mtrs in second quarter of 2014. The prices , though are still not so good and it seems that Indian mills are catering to the lower end of the market as Colombia does buy good priced fabrics too.
Shipments to Sri Lanka
Sri Lanka has been an old and consistent market for Indian fabrics. The volumes do not go beyond a particular point but still there is regular volume and India shipped over 4 million mtrs to Sri Lanka in last 12 months. The average prices are touching the average attained by Indian fabrics in all markets.
Shipments to Lesotho
Lesotho is a non-traditional market for Indian fabrics and takes up decent quantities touching over 4.5 million mtrs. The prices of such exports are very low and range around $2.25 /mtr.
Once the doyen of all exporters from India, Turkey gives a sad picture with meagre exports less than even 4 million mtrs in 12 months. The Turkish import duties killed the market and Indian exporters could never recover. The prices, though , are still the best that one can get anywhere else.
The Indian exports are expected to increase as domestic production increases and the mills rush around the world to see the markets. There are not many emerging markets left , though.
Disclaimer- All our data is sourced from various govt. sources and are dependent on them for accuracy . Though we undertake all checks to ensure right information, we do not take any responsibility for the same.
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