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  • India Denim Exports 2014

    India Denim Exports 2014

    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

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    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

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    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

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    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

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    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
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    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

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    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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  • Interview With Mr. Rajiv Dayal – MD Mafatlal Denim Mill (India).

    Mafatlal Denim is one of the well known denim mills from India.  The company has been present on the Indian denim firmament for over 15 years and were among the first in India  to have  collaborations with established international denim  players like Burlington  .  I recently interacted with the Managing Director of the company – Mr. Rajiy Dayal – to understand more about products and markets of Mafatlal Denim.  Here are some of the questions I asked him.

    Can you tell our readers a little about Mafatlal Denim ?

    Rajiv Dayal -1 (2) The Arvind Mafatlal Group ( AMG ) had , in year 1996 , formed a 50:50 equity Joint Venture Company with Burlington Industries ( USA ) called Mafatlal Burlington Industries Ltd. The Company commenced production in it’s state-of-the-art composite denim plant , located in Navsari , Gujarat , in 1997 , with a capacity of 10 Million meters of denim fabric per annum.Subsequently in 2006 , the Arvind Mafatlal Group bought Burlington’s 50% equity in the JV and the Company’s name was changed to Mafatlal Denim Limited ( MDL ).
    In 2007-08 , Mafatlal Denim increased its capacity from 10 million mtrs per annum  to 20 million mtrs.

    What do you think are the main strengths of Mafatlal Denim as a denim player ?

    Mafatlal Denim has been in the business of manufacturing and marketing value- added , differentiated denim fabrics now for over 14 years and is a reliable supply chain partner for many Indian and Global brands.

    Mafatlal Denim’s strength is in its ability to understand Indian and Global customer requirements , as well as fashion trends and offer products / Denim Collections , thru its constant efforts in Product Development and innovation.

    The latest denim range of Mafatlal includes a number of theme products  like “Chic “ and “Formal Wears” . Can we know more about the same and other new products.

    DSC05955 The “Chic Collection” , which we have just launched , is a light weight denim collection , which can be used to make innovative garments for ladies and children , using fashion denim fabrics in conjunction with ethnic Indian work , like zari borders and traditional embellishments. You have seen a few samples of this collection in the form of a denim skirt and a child’s dress.
    Mafatlal Denim has also launched a Formal Wear denim Collection , whichDSC05957 can be used to make garments ( trousers , jackets ) for office wear. This is another effort from MDL to create a new market segment for denims in India.

    Where is Mafatlal Denim more focused – domestic market or exports market ?

    Mafatlal Denim , presently exports about 30% of its production , the balance 70% being for the very rapidly growing Indian market.Our customers include Indian brands like Levis , Mufti, Spykar , Allen Solly and International Brands like Marks and Spencer , LIMITED, Pepe Jeans etc.

    How is Mafatlal Denim addressing the key issue of rising cotton prices. Do you think buyers are adjusting to the situation ?

    The prices of cotton have exponentially increased globally from around 70-80 cents a pound a year ago to extremely high levels of 160-180 cents a pound currently ( over 100% ) . As this is a global phenomenon , worldwide producers of cotton fabrics ( including denim ) have had to increase fabric prices .
    However , whilst the fabric prices have increased by over 50% over the last 1 year , due to the cotton price increase, the retail garment prices have increased by 10-15% and I feel this increase has been accepted ( though grudgingly ) by the consumers.

    How long do you think that cotton prices would take to come back to normal levels ?

    A very difficult ….. and a million dollar question …. commodity prices depend on a lot of global factors like cotton sowing acreage , yields , supply ,demand ( specially by China ), stock levels and lastly ,but very importantly , speculation. I hope cotton prices come down during the later part of 2011 and 2012 . But we will have to keep our fingers crossed.

    The Indian domestic denim market is simply booming What do you think are the reasons for the same ?

    There are several reasons for the rapid growth of the denim market in India :
    a. An excellent demographic profile in India , where the median age of the of the population is below 28 years , and the popularity of denim products has grown tremendously in the last decade . One of the other reasons , is Denims popularity with Bollywood Stars like Akshay Kumar and Katrina Kaif !

    b. Denim fabric producers , garment / washing producers and designers , have all creatively been able to make a very attractive basket of denim garments for consumers of all ages .

    c. Of course, the versatility of denim is one the important factors for the popularity of denim …… Denim is comfortable, easy to maintain and stylish.

    d. Besides the urban markets, the rural markets are growing very rapidly, due to the increasing buying power as well as product awareness and availability.

    e. A very rapidly growing retail and brand network in India , which allows customers to easily access brands and products of their choice , as well as make shopping a pleasurable experience.

    f.. Many Buying Houses from all over the world are now coming to India to source denim garments for their Indian retail business , as well as for their global requirements

    There are strong international denim trends like Jeggings which are getting stronger. How is Mafatlal gearing up for these trends?

    Mafatlal Denim does have a range of denim products, which are light weight and have the comfort of stretchability. This is very popular , specially for ladies and children’s brands.

    What are the other trends that you see  in denim fabric  constructions and finishes ?

    Popular denim trends currently are light weight denims , coated and mercerized denims with multiple wash effects and clean optics.

    What are the estimates of  production and growth in denim fabric and garments production in India ?

    The total denim fabric production in India is currently about 650 Million Meters per annum. ( 2011 ) and estimated to cross 700 MMPA in 2012. It is expected to grow at 10% pa over the next decade and had the potential of reaching 1.5 Billion meters by 2020.

    The denim fabric consumption in India ( for domestic brands and garment exports ) is about 400 -450 Million meters per year currently -2011 , and is expected to grow in the coming decade at the rate of 10-12 % every year. Presently , 200 -225 MMA of denim fabric is being exported .

    Are there any plans for expanding the fabric offering or that of garments ?

    Mafatlal Denim has a capacity of 20 Million meters a year and we do not have any plans presently for increasing denim fabric manufacturing capacity. We are carefully evaluating the denim garmenting business and would decide on a strategy shortly.

    How is the environmental consciousness among the consumers affecting denim manufacturers ?

    I firmly believe that consumers all over the world would like to buy products which are Ecology friendly . Most denim manufacturers are aware of this and are gearing themselves to conform to all environment standards.

    Mafatlal Denim is a responsible denim fabric producer and we conform to all Environment Standards and are ISO 14001 and Oeko-tex ( Germany ) certified.

    Contact Mr. Rajiv Dayal on  This Email Address

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  • Raymond denim to be sold after UCO denim unit shutting out?

    The denim unit of the UCO appears to have shut down resulting in a loss of more than 350 jobs . It was a part of the Raymond UCO denim. The two companies had merged their denim operations in 2006 with headquarters in Belgium and forming a combined entity manufacturing about 80 million metres of denim.
    Raymond has been suffering huge losses on its denim operations for the last few quarters. In the last financial year, the losses to the tune of Rs120 cr(about USD 29 million) were declared by the Raymond Group on its denim operations.
    As per reports in a national paper , Raymond appears to be willing to put its denim operations on the block. The worsening denim market coupled with increased prices of raw material – cotton – have contributed to this poor performance by the company. However, according to informed sources, Raymond has not yet taken a decision to this effect .
    Raymond Denim is one of the most respected denim company in India and enjoys a good brand image overseas. It deals with all the major denim labels and is well known for its denim developments.
    Then what are the reasons for the current situation?
    I think the merger with UCO was mistimed . Europe is no longer the right place to manufacture low value textiles like denimand to take up cost of running a number of manufacturing units there pulled heavily on Raymond Denim’s balance sheet. To top it up, the denim markets scenario worsened , rupee appreciated against the dollar and raw material (cotton fibre) became costly, wiping out margins.
    However, it still seems unlikely that Raymond will sell of its denim unit – though it may restructure it The denim operations align well with the other textile products of Raymond(Suitings,Apparel etc) and unless Raymond is unable to make a reduction in losses even in this year (with a much depreciated rupee) , I don’t think they would like to sell their denim operations.