Shipments Of Denim Fabrics From India – Prices , Destinations Etc[Subscriber Report]

Here is the next in the series of our reports for our subscribers. In the current report  we will analyze the main destinations of denim fabric exports from India to various places around the world .

The report has the following contents :

a) Top  destinations for shipments of denim fabrics from India in 2010
b)Quarterwise Average prices of fabric export  for different destinations (except B’desh).
c) Approx volumes shipped to different destinations .
d) Changes in prices  compared to 2009.
e) Some details on shipments made in 2011.
Note: We shall be covering the latest prices and destinations for Indian denim fabric in a separate report to come shortly ..

There are a number of denim mills in India and the combined capacity of these mills is about 700 million mtrs. However, when we look at exports, the figures of denim fabric exports are very dismal – mainly due to the fact that domestic market in India is VERY STRONG.. This makes selling in India more lucrative for most of the companies and only some companies export fabrics .

Lets look at some of the destinations where the Indian denim fabric is being shipped. Pl note that these are the actual destinations where the fabric is being shipped but it may not necessarily mean that the orders have originated in the same place.

a)Bangladesh : This is the top exporting destination for Indian denim fabric.
Over 55% of Indian denim exports are made to Bangladesh . Bangladesh is a huge conversion place and with over 273 million pcs of denim apparel shipped to US and EU and this is over 15 times the exports of denim apparel made by India. Hence , it is natural that it is also a huge destination for denim fabric exports. Though the exact figures are difficult to get , it is calculated  that over 50 million mtrs of denim was exported to Bangladesh from India during 2010 .

b)Turkey : Turkey has been a large market for Indian denim. Turkey is a large conversion and distribution centre and imported over 12 million mtrs of denim fabrics from India during 2010. We will speak about the average prices to Turkey in the tables below.

c)Sri Lanka : Sri Lanka is another decent sized garment manufacturing centre in Asia . It has some of the largest factories for garment conversion and about 7 million mtrs of denim fabrics was shipped from India to Sri Lanka during 2010.

d)Egypt : Egypt has always been an important market for Indian denim. However, with about 4 million mtrs shipped in 2010 , it seems to have cooled a little . But we can see more action here in 2011 reports.

e) Lesotho : Lesotho is a surprise destination .Due to the AGOA benefits given to Lesotho, the exports of apparel are duty free to USA. This has encouraged the country to grow its domestic apparel industry. In 2010 over  3.5 million mtrs of denim was exported from Indian to Lesotho . This would be a growing trend as more and more companies seek to export to Lesotho.

f)Cambodia : Cambodia is an emerging destination and is expected to get some benefits from US for duty free imports of apparel . For the moment its exports of over 24 million pcs of denim jeans to EU is quite good and expected to increase as China becomes more and more expensive. About 2 million mtrs of denim fabric was shipped to Cambodia from India during 2010.

g)Hong Kong : Hong Kong used to be a big destination for Indian denim fabrics. However, over a period of time , the exports have fallen and are currently standing at about 2.5 million mtrs in 2010..

h)China : China is a surprise destination and over a million mtrs was also exported to China . Though the Chinese apparel firms are getting more expensive, the prices of local mills are also increasing giving some leeway for exporters of fabrics from outside China.  Though in 2010, only about 1 million mtrs was exported from India, this trend should be increasing in the coming times.

Average prices of denim fabric exports from India in 2010
(Prices in USD/Mtr Fob)

Average prices of denim fabric exports from India in 2009
(Prices in USD/ mtr FOB)

In the first quarter of 2011 , we see that the prices have changed a little. In the first quarter of 2011,  the average price of export of Indian fabric was approx $3.10 / mtr fob (excluding Bangladesh).  This shows that the increase in prices due to cotton price was still reflected in prices of  denim in the first quarter. However, later quarters show some difference which we will bring out in another report.