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VOL. XIV Issue 3


Contents May 1-15, 2011

14. WorldWrapRepeated Recalls of ‘Standard’ NormsWorry Industry

Don’t Burn Your Bridges!

18. SpotlightDenimThe Indian Denim Industry

2010 Sees Growth in DenimWear Market

39. DenimTrendsRunways to Retailers: Denim HijackingThe Fashion World

42. FashionBusinessA New Wardrobe of Denim... not just aregular pair of JEANS

48. IndustryWireCentex Exports, Intercity Trader, TT Ltd.,Al-Rkayan Apparels, West-End Fashions,Bhandari Exports

52. IndiaCanvasYoung blood shows their vision andcreativity at PAF

Register as a ‘ResponsibleBusiness Trainer’…New Initiative to Scale up ComplianceStandards in India

AEPC organizes interactive meet in Ludhiana

54. H2FBeekalene Fabrics –The Power of ‘Forward and BackwardIntegration’ in Home Textiles…

56. ExportStatisticsIndia Witnesses Significant Growthin UVR to the EU in 2010

61. ResourceCentreRCBC Supplying Denim to Brands withVariety and Flexibility

Labour Saving Technology: The MostSought-after at Turel Classic Show

67. Eyes&Ears


Yogesh Khurana, MD, Gap Sourcing Inc., New Delhi India needs to develop capacity and capability

(at larger scale) before becoming a major denimmanufacturing base. Although mills like Arvind andRaymond and few others are producing world classfabrics, we have seen far fewer investments andscale of investments in garmenting units comparedto Bangladesh and now fast growing Pakistan. Thatbeing said, we cannot ignore the efforts, newerinvestments and the skills that India has shown bysupplying to most fashionable denim brands acrossthe globe. The trick would be to duplicate this effort ata mass production scale and to consistently providestandard performance.

India can address both value-added and basic denimas quality raw material is available locally and thatitself adds speed as a value. Value-added styles aremore frequently attempted by skilled facilities, asperceived to require more skilled manual input. Basicsare controlled by factories with automated lines, focusbeing efficiencies. Such factories are spread acrossthe globe; I think India can definitely bring betterefficiency at lower cost. We need more disciplined andcommitted investments.

Rajive Suri, Chairman, Impulse, Gurgaon What will

really determine whether or not the denim industry

in India wants to invest in building up their capability

is by a host of other factors and considerations whichprimarily are: Globally how well or poorly denimperforms at retail, seeing the overall depressedeconomic conditions and sentiments?

Secondly, how negatively is the industry impacted inthe current major denim manufacturing countriesboth in Asia and the Far East as well as in Turkey andEast Europe?

India is a reasonably large supply region for Walmartand other discount brands whilst also being a primarysupplier for designer and top end fashion brands aswell. Therefore, because of all the other productdevelopment, textile and apparel manufacturingstrengths that the industry in India has, “if” denimproduction is targeted then a very large part of it willhave to be “value-added” product-driven, asmanufacturing in India still has a long way to go tobecome “lean” and to achieve the productionefficiencies that are possible in other manufacturingregions/countries.

Prashant Agarwal, Jt. Managing Director, WazirAdvisors, Gurgaon India has huge potential in

denim manufacturing, denim washing and finishingneeds, good technical inputs and consistency. Indiahas huge advantage because of huge fabricmanufacturing capacity, more than 650 million metres,but we are not known as a good denim supplier,

MINDTREEfood for thought

Q U E S T I O N

Does Indiahave thecapability andcapacity to bea majormanufacturingbase for denimgarments?Which segmentshould Indiaaddress –basic or value-added, andwhy?

MAY 1-15, 2011 ApparelOnline 13

mainly because of non availability of good finishingcapacities. Indian companies initially should targetthree things: international JV with best of playersglobally; take help of international experts to set upplant and stabilize the same; and most importantly arethe design inputs.

The demand is growing in both exports and domesticmarket. India with huge capacities has to target bothmass and value-added markets in denim segment. Itdepends on mindset of investor to be in which segment.

Roopak Malik, Director-Textiles Sourcing Ltd., NewDelhi With its broad base of denim fabric

manufacturing and large labour pool, India hasgood potential to be a major manufacturing base ofdenim garments.

It is my firm belief that if the Government removesexcise duty on fabric supplied for garment apparelexports along with establishment of EPZ for apparelonly with good infrastructure and port/airportconnectivity, it would really boost the denimgarmenting business. By giving incentives toentrepreneurs for investment in apparel manufacturingunits in shape of soft loans, tax holidays alongwith higher export incentives by allowing 100%foreign investment in this sector, India couldquadruple its apparel exports, besides providing large-scale employment.

MINDTREE

The revised TUF scheme has been designed to achievean investment target of Rs. 46,900 cr. with an overallsubsidy cap of Rs. 1,972 cr. – 26% for spinning, 13% forweaving, 21% for processing, 8% for garmenting and 32%for others. However, the scheme would not be eligible forCETP, energy saving devices, in-house R&D, IT, adoptionof certifications and electrical installations.

Do you think this is a fair reflection of the requiredinvestment in the Textile chain?Write your comments to us by 07th May 2011 at: [email protected] or post yourviews online through our website: www.apparelresources.com

Q U E S T I O N N A I R E

Srini Vasan, Country Head, Mulitex Ltd., Chennai India still does not have the capacity to compete

with the likes of Bangladesh and China in the volumebased denim business, as you can get men’s five pocketjeans in these countries for less than US $ 4 to US$ 4.50. But for good quality denims and big brands,India could be an additional production base. India’sstrength has always been value-added as we are goodin ‘attention to detail’; volumes are lesser, compensatedby better prices.


WORLDWRAP

Despite the fact that retailersin the US are very stringent onsafety regulation there hasbeen an upswing in recallssince the beginning of the year.The US Consumer ProductSafety Commission hasstepped up its efforts to plugambiguity to ensure thatregulations are met before thegarments are shipped out ofthe manufacturing country.“While the CPSC regulationsprovide that products subjectto safety standards must becertified as meeting definedstandards before they can beimported into the US, there isambiguity in the provisionwhen it implies thatcertification must be based onreasonable testing program.The difficulty arises indetermining what is areasonable testing program? Acase of point is flammabilitystandards, which are not veryrigorous,” says CommissionerNancy Nord.

REPEATED RECALLS OF ‘STANDARD’NORMS WORRY INDUSTRY

In a much published casethousands of nightwear sold by thecatalog retailer Blair was recalled in

2009. The incident heightened thedebate on safety norms as Chenillebathrobes manufactured by A-OneTextile and Towel of Pakistan wereblamed for the fire deaths of ninewomen. Most of the victims werecooking when their robes ignited. Twoyears afterwards the testingprocedures have not been tightenedenough and just recently about 4000P.Jamas children’s sleepwear importedby Fashionviews Inc., of New Rochelle,NY failed to meet federal flammabilitystandards for children’s sleepwear,posing a risk of burn injury to children,though no injuries were reported.Manufactured in Peru and Bolivia thechildren’s sleepwear was made of 100per cent cotton fabrics and was sold atboutique shops nationwide for betweenabout $ 50 and $ 100. It is reallysurprising that such high-endgarments should fail safety standardswhen tested in the US.

Some of the recalls are of products thatwere being sold in volumes at topdepartment stores. One such recallwas of about 90,000 girl’s topsmanufactured in Vietnam anddistributed by My Michelle, of NewYork. The girl’s tops and dresses soldfrom January 2011 through March 2011for about $ 38 in sizes small to extralarge and 7 to 16 had beaded necklacesattached to the collar and tops withmetallic beads attached to the collar,which contained high levels of lead.Though no actual injuries werereported, the US Consumer ProductSafety Commission, in cooperation withMy Michelle, announced a voluntaryrecall from Burlington Coat Factory,Dillard’s, JCPenney, Kohl’s, Army andAir Force Exchange (AAFES), K & GFashion Superstore and other retailstores nationwide.

A major area where ambiguity remainsis in the use of drawstrings inchildren’s garments. In February 1996,CPSC issued guidelines, which wereincorporated into an industry voluntarystandard in 1997, to help preventchildren from strangling or getting

entangled on the neck and waistdrawstrings in upper garments, suchas jackets and sweatshirts, howeverthe implementation is product basedand many voluntary recalls happendue to the usage of drawstrings andthe anticipation of ‘hazard to safety’.Among a recent case 3,600children’s hooded sweatshirts withdrawstrings were recalled bySunsations Inc., of Virginia Beach, Va.The product manufactured inPakistan was considered a safetyhazard despite the fact that nountoward incident was reported.

In 2010, the CPSC granted a total of 31communications made in China recalledgarments, of which 25 batches call backwas due to the risk of strangulation ofchildren, accounting for 80.6% of thetotal number of the recalled garments.The fact that the CPSC is still receivingincident or injury reports aboutdrawstrings has raised doubts in themind of many consumer forums thatsome manufacturers and retailers areblatantly defying the guidelines. Theyhave pursued the case diligently andthe CPSC is expected soon to make alaw forbidding companies from sellingchildren’s outerwear with drawstringsof any kind with hefty fines levied onmanufacturers who break the law.

Another area, which is a major healthhazard and has been the reason formany recalls by the US ConsumerProduct Safety Commission, isapplication of ‘buttons’. In February2011, 1,500 girl’s sleeveless sundressesmanufactured in China were recalled byMatilda Jane Clothing for fear that thebuttons can come off, posing a chokinghazard. The fear was triggered by onereport of an incident with no injuries.

Since it is illegal to resell or attempt toresell a recalled consumer product, thecost of such recall is borne by themanufacturing company. It isinteresting to note that the majority ofrecalls happen on garments sourced byimporters and distributors. While bigbrands and retailers are very particularabout third party testing, importers aresometimes known to overlook details toget the right ‘price’.

1,500 girl’s sleeveless sundressesmanufactured in China were recalledby Matilda Jane Clothing


DON’T BURN YOURBRIDGES!

Bruce S.BertonExecutive VicePresident & COO,Roochi Traders Inc.,USADirect your queries to:[email protected]

The inflation, speculation,and greed, is projectedto settle down on

COTTON prices with theFutures Market projecting$ 1.25 per pound, by the end of2011. From $ 2.00+ averagewhere it is now, cotton pricesare expected to furtherincrease, and then in Augustof 2011, start to fall for thebalance of this year.

More acres of cotton have beenplanted than ever before, and ifthere are no extreme “MotherNature” catastrophes, there willbe more cotton on hand thanthe demand. Therefore, therewill be an excess inventory afterthe first yield, and hopefullyprices will level off.

Now those of us, that held backour purchasing in order toprotect ourselves and hence lostbusiness, and had narrowergross margins, now have had“time to develop new sourcesof production”, in cut andsewing of our apparel.

Many entrepreneurs in the cutand sew facilities, tried andmost likely succeeded, in closingtheir factories, letting the peoplego, and made money bypurchasing and selling cottonyarn and fabrics. We haveseen this in India, Bangladesh,and China.

We as American entrepreneurshave “Yankee Ingenuity”, andare not about to lose ourcustomers, so what has takenplace? …We sourced from othercountries, moved production toFree Trade Agreementcountries, ran on much lessinventories, cut our overheadsto the “Lean and Mean” mode,and suffered lower or no grossmargins on some products justto maintain our customer baseand relationships with ourcustomers. We are still in a

recession, therefore theretailer could not raise prices,had to live on lower grossmargins by running more sales,and cutting jobs.

Do you think as cotton pricesstart to settle into a more stablepricing, we are coming backto the original exporter ofour product?

The answer to this question, wewill see in about six months’time… relationships that are thereal contracts in InternationalTrade, will tell the story.Cambodia, Vietnam, Indonesia,Mexico, Central America, Peru,and a few Sub Saharan Africannations, have increased theirexport in cotton apparel to theUSA market place in the doubledigits of percentage.

China textile and cut and sewfacilities are being set-up in theDUTY FREE Sub Saharan Africannations like wild fire. There aretalks about Cambodia, Vietnam,becoming Free Trade Agreement(FTA) countries with the USA,as well as Korea, Columbia andPanama, that will most likely getFTA, status this year.

The apparel industry needsunderdeveloped populationsexisting in this global society, so

that they can be trained in themanufacturing of apparel. Thisworks “FOR THE GOOD of thePEOPLE”, as it creates jobs andthat creates an economy, andpermits people to live a betterlife. It allows for economies tohave available clothing to protectthem for yearly climaticconditions at one end of thespectrum, and to sportsactivities at the other end, at fairmarket prices.

Cotton is re-grown; therefore weare not raping the earth of itsnatural resources. Theprocesses to make cotton intofabric can be done withoutpolluting the earth therefore ithas become a commodity ofusage for many items, yearafter year.

We have enough natural climaticdisasters that can take theamount of cotton away from themarketplace, but greed withspeculation and politics,should not be part of the reasonto lose out on our naturalagricultural products.

Only time will tell, whether theRELATIONSHIPS that were inplace for years, will come backto you as a second chanceopportunity to be an exporter ofcotton products to the USA.When I am requested to speakat many different venues onInternational Trade, I usuallystart my speeches withRELATIONSHIPS!RELATIONSHIPS!RELATIONSHIPS!

I am waiting to see later thisyear when cotton prices arestabilizing, whether, thoseof us that were discarded fromproducing where we had foryears, come back…Remember“What goes Around ComesAround”, I only hopenot too many “Bridgeshave been Burned”.

B R U C E ’ S I N S I G H T S

Scientists in Austria havedeveloped what they

claim is a cheaper, moreefficient and eco-friendlymethod for giving a distressedlook to denim jeans, and onethat offers an alternative tothe controversial sandblastingtechnique.

In a traditional approach toremove the ring-dyed indigodyestuff, manufacturers use acombination of drum washingmachines and chemicaltreatments. However, byapplying a swelling agent tothe fabric surface – such as aconcentrated pastecontaining sodium hydroxide– scientists at the ResearchInstitute for Textile Chemistryand Textile Physics at theUniversity of Innsbruck wereable to boost the potency ofcellulose enzymes, as well asachieving localized effects.This ‘surface activation’technique also requires ashorter wash down treatmentand uses fewer chemicals toachieve the same effect.

US Retaildownbeat Marchforecasts

Sustained growth in jobsand income has

supported increase in retailsales in the US. According toKantar Retail, same-storesales were up 2.5% in March.For the apparel segment as awhole, year-on-year retailsales were up by 4.4% – theeighth consecutive month ofgains. Children’s wear stayedabove 10%, while thewomen’s category was in the6-7% range. Notable resultsin the month includedNordstrom, JCPenney, Kohl’s,Macy’s, Saks, LimitedBrands, Buckle, Zumiez andWet Seal.

Enzyme processoffers Eco-friendly alternateto Sandblasting

Only time will tell,whether theRELATIONSHIPS thatwere in place for years,will come back to youas a second chanceopportunity

WORLDWRAP

WORLDSNIPS

Denim never dies, it is anopportunity for India toemerge as the biggest

global producer of denim – onebecause of the growing domesticdemand – and more so as China,the major player with capacity toproduce 2.5 billion metres iswithdrawing because of risingyuan, increasing labour wages,shortage of cotton, inflation andmany more internal issues.Pakistan, another major player,is also battling various concernslike natural and man-madedisasters inducing no freshinvestments in infrastructure.Other Asian countries, facingshortage of cotton are laggingtoo. “Though the manpower andcotton costs are rising in India,the same is true globally, sowe are well placed as comparedto other centres,” saysVinod Arora, Chairman andManaging Director, AarveeDenims & Exports Ltd.(ADEL) who with an annualcapacity of 60 million metres isthe second largest manufacturerof denim fabric in the country. Atpresent the global denimproduction is 6 billion metresper annum out of which, 2.50billion metres is being producedby China and 0.65 billion metresper annum is coming from India.

Today, denim production andexport not only of China, butalso in growing economies likeBrazil where there are hugedenim manufacturing capacitiesare being cut back because ofnon-competence in market dueto several reasons like pollutionproblems, Government policies,currency imbalance, rawmaterial prices and so on… “Wecould capture the opportunitiesat the right time to expand ourexport business,” remarksS.N. Modani, ManagingDirector, Sangam (India) Ltd.

The growing domestic demandis also a driver for growth. “TheIndian domestic market rightnow is consuming about 380 to400 million metres annually,whereas a very developedmarket like the US is using closeto a billion metre/annum and EUwould be using near about thesame amount. With 1.2 billionpopulation and clothing each

With a present capacity of 650 million metre/annum in Denim, India has become one of thestrongest players in the global denim fabric market. Approximately 400 million metres isbeing consumed in the domestic market which includes both the Indian brands and garmentexport industry, while the balance 250 million metres is being exported to the globalmarket, mostly denim wear manufacturing bases like Bangladesh, Sri Lanka, Turkey, Morocco,Egypt. With casual wear emerging as an individual’s fashion trait particularly among thegrowing percentage of youth; denim material has the potential to catapult to 1.5 billionmetres by 2020. Apparel Online interacts with denim majors in India to get an update onthe industry along growth paths and their latest developments in denim fabric.

Potential to grow to 1.5 billion metres by 2020

THE INDIAN

DENIMINDUSTRY

SPOTLIGHTDENIM


person with just one pair ofjeans per year, the volume ismind blowing and goes toshow that India as a market isstill in absolute infancy andthere is a possibility to growin every segment,” arguesAamir Akhtar, CEO, DenimFabrics, Arvind Limited.

Indeed, there is vast scope ofdenim in India; whereas theglobal denim industry isgrowing at 5% annually, in Indiathe growth rate is about 12%and the absolute consumptionis still negligible. “In developedcountries the average denimjeans, per person is about 8,whereas, India can’t clotheeven half the population,”highlights Y.C. Gupta, CEO,LNJ Denim. Supporting hisviews, Paritosh Agarwal,Managing Director, SuryaLakshmi Cotton Mills says,

“It’s just the right time toreach to the vast populationyet unexposed to the wonderof denim.”

Undoubtedly, the usage of denimin India is expanding. Earlier,denim was restricted to themetros and semi metro cities butnow it has gone into two andthree tier towns with potential tomove into the interiors becauseof its rough and toughconstruction. “All young girlsand boys are now wearing denimand it is increasing every day. Insome of the schools, factoriesand even in offices, it hasbecome a formal wear,” addsGupta. Sharing similar viewsRajesh Narkar, ChiefMarketing Officer, MalwaIndustries Ltd. says, “Withinthe Indian market itself,conversion to denim within allage groups from urban to semi-

AAMIR AKHTARCEO, Denim Fabrics, Arvind Limited

Y.C. GUPTACEO, LNJ Denim

S.N. MODANIMD, Sangam (India) Ltd.

VINOD ARORACMD, Aarvee Denim

SPOTLIGHTDENIM



rural areas is a hugeopportunity, which can help themarket grow by 8-10%.”

The largest segment in thedomestic market is the homegrown brands which is growingfast, followed by thedistribution segment whichworks through cutters andsells it through retailers, thissegment too is growingaccording to Aamir. “The verylarge bottom of the consumerpyramid has still not moved onto denims and is wearingpolyester viscose, teri-leens,tere-cots, poly-wools whichare actually not the rightfabrics for Indian conditions.Whereas, denim is 100% cotton,low maintenance and longlasting, properties needed atthe bottom of the pyramid,”states Aamir.

Denim has also now become thequintessential element offashion in India. “India is anemerging power house for allleading fashion brands andretailers with global brands noweyeing the huge retail spacewithin India through a spree ofjoint ventures and mergers &acquisitions with big corporatehouses to market and sell theirbrand. The buying power ofIndian consumer has increasedby leaps and bounds andcustomers don’t hesitate to paya premium price for quality andfinishes,” shares Ganesh Ram,GM, International Marketing,Bhaskar Industries Ltd.according to whom the success

Arvind LimitedFocus on SustainabilityArvind the largest producer of denim fabric in the world is one ofthe most innovative companies and continuously modifies itsproduction process to enhance its denim development. The latestproduct highlights from Arvind are in three distinct areas. Thefirst is Authentic Vintage Products, wherein the key features are100% Organic, Natural Indigo, Selvdge Denim, Natural IndigoFill and Natural Linen Fill.

The second area of development is named Modern Tech Productsand the key features in this area include leather coating, superstretches and advanced finishes. Arvind is also very upbeat aboutits Excel Denim that is differentiated by soft hand, good lustre,bounce, high tenacity cellulose and is also 100% eco-friendly inline with Arvinds sustainable commitments.

Suryalakshmi Cotton MillsLimited – One-Stop-ShopWith focus on value-added fashion denims and new productsintroduced almost every month, Suryalakshmi claims to be theone-stop-shop for all denim requirements. Denim product rangeincludes 100% cotton – cotton lycra, ring slubs, multi countring slubs, cotton-poly and cotton-poly stretch in numerousshades of indigo and sulphur colours is one of the specialisationsof Suryalakshmi. Also available is mercerised, coated and colourdenims. The company has the capability to make both ropedyed as well as sheet dyed denims.

mantra for all leading brandslike Levis, Lee, Wrangler, PEPE,Spykar, Wills, to name a fewamong the large pool ofdomestic brands is the growingdenim demand in India.“Leading fashion brands (JackN Jones, Diesel, Esprit, TommyHilfiger, DKNY, Calvin Klein,Versace, etc.) are also availablein all major cities.

All leading domestic andinternational brands are nowsourcing the best of premiumquality from reputed millswithin India,” he adds. But doall the domestic brands buyonly from Indian mills, “Notnecessarily,” says Ganesh. TheIndia mills work with somevery interesting finishes whichat times make the final fabricvery expensive, and localbrands end up buying denimfrom China or even Pakistan.

In fact, many Indian companiesare importing fabric from Chinabecause of the price advantage,and in 2010 imports from Chinawas 1.25 million metres at anaverage of $ 2.42 per m2 fordomestic consumption, anincrease of around 45% involume over 2009, as againstBangladesh which imported44 million metres at $ 2.05 perm2 mostly to supplementexport. Bangladesh is in fact amajor importer of denim fabricswith a total demand of around275 million metres of which180 million metres ismanufactured in the country,rest is coming from abroad.

RAJIV DAYALMD, Mafatlal Denim Ltd.

PARITOSH AGARWALMD, Surya Lakshmi Cotton Mills

SPOTLIGHTDENIM


Arvind Limited – 120 mn metres Adding 30 mm/annum(10 mm in 8 months;rest 20 mm in 2 years)

Aarvee Denim – 60 mn metres Adding 24 mm/annum(in 2 months)

Bhaskar Denim – 42 mn metres No expansion plans as of now

Raymond Uco – 40 mn metres N/A

Surya Lakshmi – 40 mn metres No expansion plans as of now

Jindal Denim – 30 mn metres N/A

Nahar – 22 mn metres Adding 10 mm/annum(in 8 months; rest 10 mmby the end of 2012

KG Denim – 22 mn metres Adding 9 mm/annum(in 8 months)

Shri Lakshmi Cotsyn – 20 mn metres Adding 20-24 mm(in 4 months)

Mafatlal Denim – 20 mn metres No expansion plans as of now

Modern Denim – 20 mn metres N/A

LNJ Denim – 18 mn metres Adding 12 mm/annum(in 2 years)

Ginni International – 15 mn metres Adding 4 mm/annum(in 8 months)

Malwa Denim – 15 mn metres No expansion plans as of now

Ashima Group – 10 mn metres No expansion plans as of now

Sangam India – 10 mn metres Adding 4 mm/annum(in 3 months)

Denim capacity million metres/annumIndia’s present capacity – 650 mn metres/annum

In its commitment to theenvironment, LNJ Denim hasintroduced Recycled Denim.The fabrics are produced byrecycling denim waste andused denim jeans andgarments. Further contributingto the sustainable denimdevelopments, organic denimis also being produced inhuge quantities.

LNJ Denim has also launchedfunctional workwear denimwith properties of fireretardant, oil and waterrepellent, anti-microbial,hydrophilic, anti-odour, etc. Inline with current trends, thecompany recently introducedjeggings with excellentcomfort and power stretches.The company is also in the

process of developing powerstretches with properties ofanti-bacterial and hydrophilic.

Working on the feel of denim,LNJ Denim is going to launcha new “Lamina Finish” forvery soft smooth hand intheir Autumn/Winter 12/13Denim Line.

While all major players indenim are projecting 8-12%growth in denim production, asurvey report claims that theIndian denim consumptionpattern is growing at 15% perannum which is much higherthan any other fabric. Accordingto the survey, in another 3-4years, the Indian denimproduction would grow at acompounded rate of 10-12%and would touch the billionfigures. Ashish Agrawal, Sr. GM(Denim), Ginni International,is equally optimistic about thegrowth of the denim industry inIndia. He says, “Widerapplication of denim hasenhanced the consumption ofthis fabric,” he points out.

“The golden period for thetextile industry in India ingeneral and for denim inparticular has begun and weshould take advantage bycreating value addition toimprove our margins instead ofmerely exporting fabrics in abig way,” comments Vinod.While the movement in theinternational market is towardshigh fashion denim,opportunities lies both ways forfabric manufacturers in Indiaas denim is moving into themasses in India. “Denim is theright product for workwear.Globally it started off as aworkwear, went up to fashion.In India it started off as fashionand now you can see it’s goinginto workwear; that would bevery large segment for thebusiness to grow,” adds Aamir.

Himanshu Joshi, HeadMarketing – Denim & BottomWeight, Shri Lakshmi CotsynLtd. (SLCL), strongly feels thatdenim’s growth will continue asit eats into other competitiveproducts. “The key to growthlies in understanding consumerdesires, just not needs, andtailoring the productsaccordingly. As the biggestexponents of denim, younggeneration outnumbers theageing ones in years ahead,denims are to stay and chartgrowth path,” he comments.

InnovativeApproach isEssential GrowthDriverIndia is fast emerging as adenim sourcing hub within theglobal denim arena and is moreinnovative and creative in itsproduct line as compared toChina. “What Indianmanufacturers areconcentrating on is innovationand that is what will keep theinternational marketinterested in Indian denim,”says Rajiv Dayal, ManagingDirector, Mafatlal Denim Ltd.

No wonder today the Indianmarket is highly differentiated,driven by the need for fashionand innovation within itsproduct base. Arvind Ltd.attributes its success toinnovations. “We have invested alot in design and innovation.Today, design, innovation and

LNJ Denim—New Directions

HIMANSHU JOSHIHead Mktg. - Denim & Bottoms, Shri Lakshmi Cotysn

ASHISH AGARWALSenior GM, Ginni International

SPOTLIGHTDENIM


sustainability are the threethings on which we bring valuefor our stake holders resultingin around 15% growth over thelast three years,” avers Aamir.

According to Rajesh, mercerisedfabrics are now very much thenorm for all brands across theorganized and unorganizedsector. “At Malwa, we mercerisedenim to impart a cleaner lookand sheen which helps inkeeping the products dark.Further, one of our fast movingfinishes especially in theinternational market is coateddenim, which is imparted by aninfusion technology instead ofspread. This makes the fabricbreathable and also permeablefor heavy stonewash finishes,which cannot be done withnormal spread technology,”says Rajesh.

Coatings have new dimension tothe denim fabric with a waxedfeel on the outer surface andcotton touch inside. Thecommon coatings are pigment,resin, acrylic and PU. “Aspigment coatings also bleed withbase denim fabric, they give anew look after every fewwashes, PU and Acrylic coatingsimpart transparency to basefabric design while resistingwash down effects for longerduration of wear. Resins give aleather shine look while retainingthe basic cotton character,”describes Himanshu accordingto whom international buyerslook for eco-friendly breathablecoating imparted through foamfinish with minimal chemicaluse within prescribed normsfor health concerns.

While denim fabric export in 2007 was around 45 million metres andin 2009 it was 50 million metres showing very minimal growth, theproduction capacity of denim has almost doubled in last five yearswhich straight away translates that there has been 12% to 15% growthin the domestic consumption.

The biggest denim fabric export market for India is Bangladesh whichis almost 50% of the total denim exports from India followed by Turkeyand Sri Lanka. High value denim is being bought by Turkey, Hong Kongand Belgium.

Bangladesh the Biggest Market for Indian Denim Fabric– SHARAD JAIPURIA, CHAIRMAN, GINNI INTERNATIONAL

GinniInternationalDeveloping forComfortGinni has launched itsexclusive range of premiumdenim shirting quality with awide range of shades andlooks. Various fibres such asTencel, Modal, Excel, Viscose,Stretch and various range ofman-made fibres are added tothe shirting range to give widevariety of feel and appearanceto the fashion market.Domestic market is still

conventional and has fewerrequirements for specialfinishes as compared tointernational market, feelsAshish. “International playersare ready to pay for value addedfinishes and fashion fabrics. InIndia the trend is now pickingup and we are hoping that innear future Indian brands willbecome a consumer of morevalue added products,” he says.Himanshu too feels that India ismore to do with fashionablelooks. He states, “The Indianconsumer prefers fashion to theextent even if it doesn’t let theskin beneath breathe!” Hefurther adds, “The internationalbrands initially brought coated/special finish products to Indianconsumers and the trendpercolated to other Indiandomestic brands hence there isa thin dividing line between therequirements now.”

Suryalakshmi has pioneereditself into organic denim,

certified with Global OrganicTextile Standard (GOTS) fororganic cotton and organicexchange. “One has to createniche by being innovative andtoday by offering organic denimwe have created a distinctposition in the internationalmarket,” says Paritosh. Whilethe cotton is being sourced fromorganic farmers in Maharashtraand Orissa, indigo used is fromcertified chemical companieswith acceptable chemicalproperties as approved by GOTS.

Malwa too is moving towardsorganic denim. The company isGOTS approved and has madeenvironment sustainability akey agenda for its product line.“We are re-launching ourorganic and sustainable denims,as part of a new line calledNaturals – the fabrics are morecontemporary in colour andconstructions and dyeing ispure super dark – one of thedarkest in the industry,”highlights Rajesh.

RAJESH NARKARCMO, Malwa Denim

GANESH RAMGM, International Marketing, Bhaskar Industries Ltd.

Lycra cotton products withcomfort stretch, normal stretchand power stretch have beendeveloped for the growingstretch demand of the fabric.To add value to coated fabricvarious international coatingformulations have beendeveloped with Polyurethane,Pigment, Resin giving a widerange of dry finishes option tothe garment manufacturer andwashers. Coated fabric withleather finish is speciality ofGinni International.

Ginni also provides a widerange of chemical andmechanical finish. Thecompany has developeddenim fabric using varioustechnologies not popularlyused in Denim to give newlooks to Denim. Finishes likecalendering, brushing, sueidinghave imparted a dynamic lookto a dynamic fabric.SHARAD JAIPURIA, Chairman, Ginni International

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Blends are also an area ofexperimentation and among thecompanies that have really doneR&D in this area is Bhaskar,which is offering exciting blendswith Cotton/polyester, cotton/tencel, cotton/bamboo, 100%tencel etc. Shri Lakshmi Cotsynis also focusing on value addedproducts in combinations ofcotton with other fibres like silk,linen, bamboo and other eco-friendly materials. Super Stretchlycra, indigo denim with yarndyed combos are also a focusarea. “We are in the process ofintroducing jacquard designs,chambray and organic cottonfabrics to cater to nichemarkets of India and overseas,”shares Himanshu.

Denim DemandPromptingExpansionsSeeing the burgeoning demandof denim fabrics both in theinternational and domesticmarket, the denim fabricmanufacturers are increasingtheir capacities. Arvind andAarvee, the two top players aregoing for major expansions.“Arvind Limited is very buoyanton denims. We will continue toincrease our market share in theinternational as well as Indian

Gupta. “In another four monthsproduction per annum would be14 million metres,” adds Modani.Ginni International after a recentexpansion is now producing 15million metres/annum and by theend of this year another 4 millionmetres would be added to itsannual production capacity.

While SLCL is now going toincrease its capacity two folds infour months’ time, NaharGroup’s denim production hasincreased to 22 million metres/annum an addition of 4 millionmetres. “By December 2011, wewill start producing 10 millionmetres/annum. Rest of the 10million metres would be addedby the end of 2012,” sharesAnand Bansal, V-P Marketing,Denim Division.

MafatlalDenimIntroduces ChicCollectionWith a strong PD anddesign team, Mafatlal hasrecently come up with‘chic’ collection which isbasically for ladies, a mixof fashionable denim fabricwith ethnic touch. Thecompany is also trying toposition denim as formaloffice wear and making itfancier for children’s wear.

Sangam IndiaNew Player in InnovationA very young player in denims, Sangam manufactures denimfabrics with various finishes like flat finish, over-dyed withsulphur, grey sulphur, indigo blue, SBIT, IBST, GREEVES denim,black over black and pure indigo from 0.5% to 4%. The fabricis available from 5 ozs to 15 ozs and contains OE slub, silikies,mix count, multi-count, stretch along with plus poly weft.

market. By the end of this yearwe will have a globalmanufacturing footprint by wayof our denim plant inBangladesh,” says Aamir.Producing 120 million metres/annum, the company is nowadding 30 million metres in itsBangladesh facilities. “In thefirst phase we will add 10 millionmetres so all put togetherwithin next two years, we’ll be at150 million metres,” sharesAamir. The Bangladesh unitwould be operational byDecember this year and wouldproduce 10 million metres.

With current 120 million metres,Arvind Limited claims to be thelargest denim producer andseller globally. “There arecompanies with larger installedcapacities but nobody is actuallyproducing and selling 120 millionmetres annually. Four-five yearsback we were amongst the topthree and there were a fewlarger players in the US andEurope but now the climate hasreally changed and we havesignificantly moved up thevalues chain,” points out Aamir.This year the denim fabricdivision has contributedUS $ 320 million to Arvind’sbusiness in terms of revenue.“In next two years we’ll be aboutUS $ 500 million,” says Aamir.

With the opening of internationalmarket and increase in denimconsumption in the domesticmarket, demand for denimfabrics is expected to soar.Leveraging its strategicstrengths, Aarvee Denims iseyeing the growing overseastextiles market and is putting upnew capacities to retain itsleadership position. “We plan tofurther increase our denimcapacity by another 24 millionmetres taking the total capacityto 84 million metres,” says Vinod.

The company is investingRs. 100 crore on its expansion.External commercial borrowingswill account for 50 per cent ofproject cost; the other 50 percent will be raised from internalaccruals. “The first 12 millionmetres is about to go on streamnow while the second phase of12 million metres is also in theprocess of installation andwould go in production by June2011,” informs Vinod.

Aarvee’s units are running at100 per cent capacity and thecompany posted a turnover ofRs. 378 crore in 2009-10 andhopes to reach the Rs. 475 croremark during the FY 2010-11primarily due to higher volumeand higher realizations onaccount of price rise. “For theyear 2011-12, we are hopeful ofachieving a turnover of Rs. 750crore in view of the capacityaddition of 30 million metres. Weare confident of reaching theRs. 850 crore mark in FY2012-13” after implementation ofthird phase,” states Vinod.

KG Denim too is going forexpansion; the company ispresently producing 22 millionmetres/annum. SharesGopinath, General Manager-Denim Sales, “Once wecomplete are expansion whichwould be by the end of this year,we’ll produce an additional9 million metres/annum.”

LNJ Denim, Sangam, SLCL andNahar Group are all going forexpansion. “We are presentlymanufacturing 18 million metresper annum and with expansion,which would be completed in 2years, we will be producing 30million metres/annum,” informs

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Some very innovative yarns andfibres have been developed tosupport the productdevelopment efforts of denimmanufacturers. Birla Modal thesecond generation fibre andBirla Excel the third generationfibre with a very high tenacityand good wet strength is beingused extensively by ArvindMills. These fibres that dye andwash very well and the AdityaBirla Group have signed a three-year contract for Birla Excel tobe used in denim exclusively byArvind. The fibre also has theadvantage of inbuilt anti-bacterial qualities.

Another interesting fibre LycraT400 a DuPont product withgood recovery and perfect fordenim, is interesting for denimmanufacturers as it can take tostone, sand and vintage washesfor denim as well as the indigocolours. It is creaseless and isbeing sampled right now byRaymond and Arvind for denim.Lycra T400 is a higher version oflycra and can be used for 8-16

Bhaskar DenimLooking at Premium SegmentBhaskar’s R&D focus is only on the premium and fashion denimsegment. It plays a lot with special yarns, finishes and blends.The company develops bi-seasonal products with the help of aEuropean designer. All types of special coating and finishesand a lot of play in pigment/acrylic coating for a raw/authenticlook are experimented with. Epic/Eternal finish – which is moreon the indigo retention, luster and good hand feel is also aspecialty of Bhaskar.

Developments of products both in tune to international anddomestic brands retailers helps Bhaskar to offer a wide array ofproducts from super soft light weight to the most authenticbottom weight range. The company also offers flexibility inproduction with rope and slashes dyed denims.

Besides offering premium finishes like pigment, tinting, flatmercerize, epic /eternal /matrix/ pyramid coating, Bhaskar isalso offering exciting blends with cot/poly, cot/tencel, cot/bamboo, 100% Tencel etc. Oeko-Tex and GOTS certified, organicdenim is also available.

Strong in stretch qualities, the variety of stretch denims includesregular stretch, comfort stretch and super stretch products,black poly spandex, T-400 stretch and mechanical stretch.Bhaskar is also strong in light weight and compact constructionsfrom 3.5 to 7 ozs for shirts, tops in twill, chambrays and cordscomposed of 20s, 30s, 40s, 50s, etc.

SPOTLIGHTDENIM

ozs denim. The fibre also takesthe latest treatment like antiquefinish, whisker washing,sandblasting with excellentresults. It has excellent stretchretention even after 50 industrialwashes. From hospitality tocorporate wear to medical andprotective apparel it has arelaxed stretch for comfort.

RSWM has strategic alliancewith DuPont and has exclusiverights to produce NaturalStretch Yarns under brand nameDuPont Sorona which is ideal fordenim as it can take the varioustreatments given to denim.Natural Stretch Yarns areproduced in combination withother fibres exhibits specialattributes during processing ofthe fabric. It behaves as normalring spun yarn until weaving.

In fact, Recron Stretch is idealfor denim jeans. Recron Micrellehas anti-microbial qualities whileRecron Melange Vxxx makesgreat shirting, denim andbottom wear and is easy carewith cross shades.

The Lycra T400 fibre has excellent stretch retention even after 50 industrial washes

Denim Innovations in Yarns

2011 poised for major growth

The eternal appeal of denim is justgetting stronger… among the fewclothing categories that has becomean everyday garment and a high-endfashion statement, jeans areperhaps the most versatile articleof clothing today. Even the mostconservative estimates peg theworld market for denim wear ataround $ 60 billion and a recentreport by Global Industry Analysts,Inc (GIA) estimates that the globaldenim jeans market is poised toexceed $ 65 billion by 2015. Thisgrowth is primarily driven by jeansthat offer better fit, superior style,durable quality, and an affordableprice tag. Additionally, lifestylefactors, fashion trends, celebrityendorsements, and employmentconditions also contribute to themarket growth. In fact, on a globalbasis, about 25% of denim customerskeep track of street fashions andcelebrity endorsements to decidetheir purchases.

2010 SEESGROWTH INDENIM WEARMARKET

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It is estimated that in the USalone about 450 million pairsof denim jeans are bought

each year. With most retailersand brands running denim lines,the competition has reallyheightened; brands choosenew materials, finishes,innovative fibre blends and novelcuts to differentiate.

In the last two years when theeconomy was slow, the marketfor jeans took a beating thoughthe low-end category was stilldoing brisk business withbrands like GAP and retailerslike Walmart having takers fortheir denim lines. Today,ironically, while every retailer isasking for innovation, price isequally important and onlythose manufacturers/retailerscan survive the market thathave the ‘right’ combination ofnewness and price.

For the US the top threemanufacturing hubs for denimwear are Mexico, China andBangladesh, who between themaccount for about 45% of totalimports to the US in denimwear. In the EU the topcountries are China, Turkey andBangladesh and they collectivelyaccount for around 54% of totalimports to the region.



The IndiaPresence…Rajive Suri, Chairman,Impulse, which is sourcingmore than $ 280 million worth ofproducts for major brands likeEsprit, Next, Paul Smith andDebenhams, is optimistic yetcautious about India’s future inthe global denim wear industry.“Speaking purely in terms ofentrepreneurial abilities,technical, financial, managementand product developmentcapabilities, India definitely hasthe wherewithal to be a majorplayer in denim wear… what willreally determine whether or notthe industry in India will want toinvest in building up thiscapability will be determined bya host of other factors andconsiderations and theseprimarily are how well or poorlydenim performs at global retaillevel, how negatively theindustry in the current majordenim manufacturing countriesboth in Asia, the far east as wellas in Turkey and East Europe isimpacted by the denim marketmovements and mostimportantly will the major denimbrands and retailers invest intheir sourcing plans for denimout of India?”

Indeed, despite having some ofthe biggest and best denimfabric manufacturers, India’spresence in the global denimwear market is negligible andbuyers are slow on committingto buying from the country. In2010, India exported men’s andwomen’s denim trousers worthEuro 44 million and Euro 24million, respectively to the

European Union. To the US,India exported men’s andwomen’s denim trousers worth$ 13 million and $ 20 million,respectively. As a percentageshare it is less than 1% of theworld market. China, a majorsupplier exported men’s andwomen’s denim trousers worth$ 317 million and $ 845 million,respectively to the US and Euro547 million and Euro 516 million,respectively to the EU.

Besides Mexico, which is theprimary denim jeans supplier tothe US because of its proximityand NAFTA agreement thatexported men’s and women’sdenim trousers worth $ 722million and $ 226 million,respectively to the US in 2010,Bangladesh has emerged as animportant player in denim withpenetration both in the US andEU. While the country exportedmen’s and women’s denimtrousers worth Euro 294 millionand Euro 118 million,respectively to the EuropeanUnion, in the US, Bangladeshexported men’s and women’sdenim trousers worth $ 148million and $ 67 million,respectively. Because of thecompetitiveness of Bangladeshin recent times, retailers andwholesalers from Japan,Turkey, India, and even Chinaare also switching to Bangladeshas a reliable and pricecompetitive source for jeans.According to an AO analysis, 22local denim manufacturing unitsare in the process of expansionand even India’s leading denimfabric manufacturer Arvind hasbeen motivated to set-up a30 million metres plant in

Bangladesh, as the business ison the upward path.

In the meanwhile, India is facingan uphill task as it cannotcompete on prices. The costingof a denim product goes haywireright from the fabric stage. “Astandard washed denim from anIndian mill cost around Rs. 150($ 4-5) a metre in India, the samefabric is available in Bangladeshfor $ 2.4 added to that is theCMT cost which is around $ 16-18 per dozen in Bangladesh andwould work out at around $ 25-30 per dozen in India. On finalcosting a pair of jeans whichworks out to $ 5-7 in Bangladeshwould cost a buyer over $ 10 inIndia,” reasons Roopak Malik,Director – Textiles Sourcing

Limited. The company is amulti country sourcing agencyand trading/manufacturingcompany based in New Delhiwith an annual turnover of $ 15million. The buying office issourcing its denim wearrequirements from Bangladeshand Africa because of the price.

Bangladesh gets the doubleadvantage of lower price offabric and rebate on importedfabric. Of course many otherfactors go into supporting thelower cost of production inBangladesh, which includelower wages, higher productivityand GSP arrangement withmajor markets.

At the price that India is offeringit is more into the fashion denimsegment. No wonder the EU hasbeen a bigger market for India,mostly because of the fact thatEurope is working on smallerquantities with higher valuedifferentiation. The Unit Value ofdenim trousers to the EU fromIndia for men in 2010 was Euro11.58 and for women jeans itwas Euro 8.21. In both cases theUV was on the higher side whencompared to competitors likeBangladesh (Euro 4.66 and 4.11)and Pakistan (Euro 5.76 and5.26). “India has not been able toposition itself significantly in thedenim wear market, at the lowerend we cannot compete withcountries like Bangladesh onprice whereas in the fashionsegment, we do not have therequired infrastructure to meetthe extremely high standards inwashing and finishing that isinternationally in demand,” saysPunit Gambhir, HeadMarketing, Gokaldas Images.

India is facing anuphill task as it

cannot compete onprices. The costingof a denim productgoes haywire rightfrom the fabricstage. The fabric inIndia works outcostlier basicallybecause of theexcise duties onfabrics sold in thedomestic market,whereas the fabricexported getsexemption

RAJIVE SURIChairman, Impulse

SANDEEP CHABLANICEO, Arvind Ltd Lifestyle Apparel, Jeans (Exports)

YOGESH KHURANAManaging Director, GAP

ROOPAK MALIKDirector, Textiles Sourcing Limited

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– ROOPAK MALIK, DIRECTOR,TEXTILES SOURCING LIMITED


The company is one of thefrontrunners in denim wearfrom India with an installedcapacity of 1,50,000 jeansper month.

The industry realizes thatplayers have to take a decision,either increase capacitysubstantially to compete onvolumes or invest in washingand finishing for innovativeofferings that can command‘price’. Both are easier saidthan done. Yogesh Khurana,MD, GAP, which is responsiblefor buying worth $ 1.5 billion inIndia and which also includes aminor percentage of denimwear, feels that India canaddress both, as quality rawmaterial is available locally andthat in itself adds speed as avalue. “Value added styles aremore frequently attempted byfactories that have skilledworkforce as againstautomation as required to dobasic jeans. We need moredisciplined and committedinvestments,” argues Yogesh.GAP is mostly buying denimproducts with handwork on itfrom India and the countryaccounts for around 15% oftotal buying from the region.

No doubt, adding morecapacities is critical. “If India isto make a mark we need toincrease capacity by 400% innext two years,” says VinodArora, CMD, Arvee Denim.Adds Punit, “Practically if somebusiness does shift to India, wedon’t have the capacities toaccept the orders.” In fact it isvery difficult to calculate thereal capacities available in Indiafor denim because only a few

companies have dedicatedlines for jean manufacturing,most of the companies areoperating on flexible lines andusing the same machines forother products as well. The fewcompanies that do havededicated lines include FFI, LTKarle, Gokaldas Images, PearlGlobal, Arvind Exports, ShahiExports, Orient Craft, IndiaUnited Mills, Alrkyan, Unitexand Prateek Apparels

Buyers also suggest that Indiathough having the potential hasnot invested enough to be amajor player and although millslike Arvind and Raymond andfew others are producing worldclass fabrics, there have seenfar fewer investments andscale of investments ingarmenting units compared toBangladesh and now fastgrowing Pakistan. “Many of thecompanies in India arereluctant to invest in adedicated denim plant becauseit is very capital intensive andthey are not sure that they willget enough business to feed thefactories,” argues Malik. “Thatsaid we cannot ignore newerinvestments and the skills thatIndia has shown by supplyingto most fashionable denimbrands across the globe. Thetrick today to excel in denim isto mass produce and toconsistently provide standardperformance,” adds Yogesh.

Buyers like GAP, Target, VF,Diesel, Zara, Li & Fung have allcome forward to say that theyare looking at options fromIndia. “In the last one monthitself I have received two majorenquires from France and

Vital Stats DenimWear 2010…The US Market

The US imported men’s denim trousers worth $ 1,749 mnin 2010, which is a 8.53% increase over 2009 and women’sdenim trousers worth $ 1,777 mn, which is an increase of3.79%.

China, a major supplier to the US exported men’s denimtrousers worth $ 317 mn, an increase of nearly 8% with ashare of 18.13%. The country exported women’s denimtrousers worth $ 845 mn, an increase of 13.61% with ashare of 47.55%.

Mexico, which is the primary denim jeans supplier to theUS because of its proximity and NAFTA agreement, exportedmen’s denim trousers worth $ 722 mn with a 41.30% share,an increase of 7.34% from 2009. In women’s denim trousersexports were worth $ 226 mn with 12.73% share, adecrease in exports of (-) 11.09.

Bangladesh exported men’s denim trousers worth $ 148mn to the US with 14.49% growth from 2009 and 8.46%share in the market. The country exported women’s denimtrousers worth $ 67 mn, a decline of (-) 7.45% from 2009,the share in the US market was 3.79%.

India exported men’s denim trousers worth $ 13 mn, adecline of (-) 22.52% from 2009 and women’s denimtrousers worth $ 20 mn, a decrease of (-) 6.81%.

The EU Market

The EU imported men’s denim trousers worth Euro 1,950mn in 2010, which was an increase of 9.74% from lastyear. In women’s wear imports of the EU were worth Euro1,410, an increase of 6.63%.

China is exporting men’s denim trousers worth Euro 547mn with increase of 19.23% in 2010. Its market share is28.06% and in women’s denim trousers exports were worthEuro 516 mn with 9.98% growth and 36.62% market share.

Turkey was a frontrunner in denim exports to the EU withexports in men’s denim trousers worth Euro 375 mn, anincrease of 10.77% and market share of 19.26%. In women’sdenim trousers the exports was worth Euro 320 mn, anincrease of 17.08% and market share of 22.72%

Bangladesh exported men’s denim trousers worth Euro 294mn with an increase of 6.75% and market share of 15.08%.In women’s denim trousers exports were worth Euro 118mn, an increase of 17.50% over 2009 and market share of8.37%.

In 2010, India exported men’s denim trousers worth Euro44 mn, which is a decline of (-) 20.41% from 2009 with ashare of 2.25%. In women’s denim trousers, exports wereworth Euro 24mn, an increase of 8.45% with share of 1.71%.

MANISH BHARTIHead LF Fashion Division, Li- & Fung

PUNIT GAMBHIRHead Marketing, Gokaldas Images

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Scandinavia for denim wear,”informs Manish Bharati,heading the LF FashionDivision at Li & Fung. Whathas attracted these buyers isthe innovation in washes andfinishes, which are a key togrowth in this segment. “Thereis no such thing as basic denimanymore and all denimsnowadays have innovativewashes and finishes or somevalue additions like badges/embellishments,” adds Malik.

Looking for integratedadvantages most of the denimmills have now entered thegarment segment withpresence both in the domesticand international market.Arvind has an independentSBO as a different businessunit in Bangalore which is intoexport of denim jeans and thisis possibly one of the largestcapacities in India withinstalled capacity of 7.2 milliongarments per annum. Based oncurrent demand 90% ofproduction is for exports,which translates into $ 42million worth of exports. Thedivision works with brands likeGAP Inc, Kohls, Patagonia,American Eagle, H&M, Next,Energie, Pepe, Mustang andmany others. The average FOBvalue is INR 425 (US $ 9.80 ascurrent value of US $ 1 = INR43.5) per garment, which isexpected to rise to INR 450 (US$ 10.35) by the end of thecurrent financial year. “Arvindis looking aggressively topenetrate the internationalmarket with innovative jeansand for this we have investedheavily in laundering facilities,”says Sandeep Chablani, CEO,Arvind Limited LifestyleApparel, Jeans (Exports). Asof today, Arvind employs thefinest artisans to developgarments with a vintageappearance. To achieve thislook, various techniques in thedry process as well as the wetprocess are employed includinghand sanding, rip and repair,garment resination, lasertechnique, towel wash, ozonefinish to name a few.

Surya Lakshmi Cotton Mills,which entered the garmenting

Henry Ford once said that mass manufacturedproducts should be affordable to the masses. This logic

holds true for cars as well as for manufacturing of clothing. Toproduce a garment for the mass market and be competitiverequires intervention in 3 areas.

Optimizing raw material consumption

Reducing work content thus reducing labour cost.

Scientific management

Saving on raw material has again two aspects to it: firstly,reducing consumption of fabric per jeans at a given cost; andsecondly reducing the cost of denim fabric itself.

To reduce the fabric cost one should work closely with the millsto ask for exact width of fabric, whereas to reduce consumptionmarker systems by Gerber, Opti-Tex, Lectra are certain to givebetween 88% to 92% efficiency and also reduce end bits waste.Thus 5% to 7% savings can be expected on the fabricconsumption.

A reliable source confirms Levi’s most automated plant in Belgiumused to make jeans at 9 standard minutes (SAM)! Not onlythat, a factory in Turkey makes 48 jeans per machine per shift.The above are two benchmarked cases, whereas in mostfactories time taken is between 20 standard minutes to 11standard minutes. It is because most of the sewing operationsin jeans can be automated to a large extent, thanks todimensionally stable and stiff denim fabric. The automated andsemi-automated technology for jean manufacturing areavailable from major sewing machine manufacturers like JUKI,PFAFF, Duerkopp Adler, Vibemac, etc.

While the manual and semi-automats require 1:1 machine tooperator ratio, the automats like decorative stitch to hip pocket,hip pocket attach, etc. can work with 2:1 machine to operatorratio. In a sequential cycle, sewing workstations like hip pocketcrease and hip pocket attach, a single operator can operateboth the workstations proficiently in sequence thus also boostinglabour productivity.

There is another way that the productivity can be increased,that is by complete re-engineering of the operation frombatch processing to continuous processing. For example, inthe conventional method (batch processing) zip attachment toright and left fly will take approx. half-a-minute, or around 900-950 pairs of jeans per day. Alternately if we attach zipper fromcontinuous roll to separate fly and then cut and attach stopperand slider, we can improve productivity to around 50,000 pairsof jeans per day (StitchWorld, June 2006, page 27).

Even if we take the running cost per machine per shift of eighthours to INR 1000 then 25 INR (1000/40=25) is the CM(cut make) cost per jeans. (StitchWorld, June 2007, page 16).

While we have discussed only labour cost reduction in sewing,the scope of savings in large scale production is aplenty in thepre-sewing section also. All these savings bring down the runningcost per machine per shift further. Add to this, cost of fabric,trims and washes to give a very competitive edge…

MANUFACTURING JEANS FOR A PROFIT…

OPERATION DESCRIPTION S.A.MPARTS PreparationAttach back yoke 0.32Hem back pockets & coin pocket 0.2Sew decorationstitch onback pockets 0.24Attach back pockets 0.46Bartack back pockets (4) 0.31Close back rise 0.30Make belt loops 0.17Attach coinpocket to pocket facing 0.27O-lock pocket facing, right front,right & left fly 0.43Attach label to pocket bag 0.28

2.98ASSEMBLY SectionAttach pocket facing & attachpocket bags to front 0.47Topstitch front pockets 0.57Close pocket bags 0.43Tack front pockets at sideseam& top 0.52Attach and topstitch left fly& attach zip 0.64J-stitch left fly 0.30Attach zip to right fly& attach fly 0.49Close front rise 0.44Bartack fly (2) 0.29Sew sideseam 0.75Sew inseam 0.65Attach waistband 0.54Open seams at band endsand sew waistband ends 0.72Bartack loops (2*5) 0.30Hem bottom 0.52Sew leather label to waistband 0.50TOTAL Assembly: 8.13

Preparation + Assembly 11.11

OPERATION BREAKDOWN ANDWORK CONTENT OF A BASIC 5POCKET PAIR OF JEANS

Source: Eton, India

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segment in 2006, ismanufacturing 2,00,000 denimbottoms per month of which55% is being exported to buyerslike Levi Strauss, Jone Appareland Otto Germany who arecatering to the mid-marketsegment. “Even in this segmentlots of innovation is requiredand we are providing ResinFinish, enzyme, stone, rinse,vintage washes, PP sprays,hand scrapping, crinkling,tacking, grinding, damaging toname a few value adds,” saysParitosh Agarwal, MD,Surya Lakshmi.

Many industry players blameGovernment policies for thereluctance to make hugeinvestments in garmenting. “Itis my firm belief that if theGovernment of India supportsthe industry we couldquadruple apparel exports,besides providing large scaleemployment,” says Roopak.Among the suggestions are –removal of excise duty on fabricsupplied for garment apparel

exports, establishment of EPZfor Apparel only in thehinterland, with goodinfrastructure and port/airportconnectivity, incentives toentrepreneurs for investmentin apparel factories like softloans, tax holiday and higherexport incentives and allowing100% foreign investment in thesector. Prashant Aggarwal,Consultant, Wazir suggeststhat Indian companies initiallyshould target 3 things –international JV with best ofplayers globally, take helpof international experts to setup plant and stabilize thesame and concentrate moreon innovation.

India as a marketready to explode…For denim wear, India is fastemerging as a major marketand most denim majors areselling big in India withaggressive plans lined up tolaunch new brands and

SPOTLIGHTDENIM

innovative trends for the market.According to estimates, the sizeof the denim market in India isabout 65-70 million pairs. It’s alarge structured industrygrowing at about 15-20% a year.“We are only growing as there isa robust demand for denim inIndia. The East Asian market isgrowing aggressively. Europehas seen a general slowdownand in the entire apparel sector,”says Chakor Jain, businesshead for Lee in India.

Indeed, the denim wear marketis growing rapidly in the country.It is currently estimated at$ 1 billion and expected toreach $ 2.1 billion by 2015. Thekey growth drivers are thefast growing youth andurban population; denimmanufacturing picking uppace with more large andimproved units coming up; andmore people wearing it to thework place.

No wonder international brandslike Levis, Pepe Jeans and

Wrangler have seen steadygrowth over the years. Otherslike Mustang, Calvin Klein andGuess are also increasingtheir footprint. Mango, Zaraand Marks & Spencer haveintroduced denim jeans at theentry level to attract first timeconsumers. Levis introducedits low-priced Signaturebrand in India a few yearsago and has shown highgrowth in this segment.Companies like GokaldasImages have committedaround 40% of their capacityto domestic market.

Interestingly, till about a monthback the export companieswere looking at increasingtheir domestic presence, butnow with the new excisestructure as detailed in the2011 budget in place, most ofthem are looking at options toshift back to exports to avoidthe hassles of the excise net..the environment is conduciveto increase presence in theinternational market.


Denim, a regular in the world of fashion,be it winter or summer, truly defines a‘classic’ in the real sense. Making itsmark since the 18th century, “denim”has evolved in numerous ways, stylesand looks, and has with time become aconnotation used for both fabric andjeans. Denim as a trend is making amajor comeback in 2011 by gettingmarried to high fashion. The year all setto impart a new image to the word, bymaking it visible with a lot morevariations that are more ‘designer’ thanbasic. Showcasing a prominent presencein new silhouettes like dresses, jackets,trousers, shirts and shorts, consumersare amazed to see denim like neverbefore, and are accepting them as arage. Forming a new wardrobe of its own,AOAOAOAOAO explores what’s new in the market,and how the product is progressing,outlining new directions…

From retailers torunways, denim is notjust a global need thisyear, but is a global

trend catering to the variationsin which it is being foundavailable. Designers all over theworld are putting their creativeheads together to innovate thelook as much as possible to usethe fabric not for the rawnessthat it is known for, but to createnew meanings which are goingback to the retailers in a morecommercial way to suit themasses. Celine, Derek Lam,D&G, Chloe, Just Cavalla, DieselBlack Gold, and StellaMcCartney brought attention tonumerous denim pieces in theirinternational catwalks, whichare rapidly being picked up byretailers dealing with fastfashion. As casual as Denim isthis year in relaxeddeconstructed styles, it is also astatement of over the top luxurywith a refined shine, making itsuitable for any time of the day.

FASHIONBUSINESS

A NEW

OFWARDROBE

“I have often said that I wish I had invented blue jeans:The most spectacular, the most practical, the mostrelaxed and nonchalant… They have expression,modesty, sex appeal, and simplicity – all I hope for inmy clothes.”– YVES SAINT LAURENT

What more can be said in the praise of denim… no wonderevery possible manufacturer, retailer and consumer wants hisshare of the pie!


Also, to suit every body type andheight, the options stacked inthe stores are endless. The realkey to achieve the upcominglook is “simple shapes, simplecuts with subtle yet very visibleinnovation”.

The fabric from its productionstage is being worked upon withminimal washes, vibrant indigoshades of blue, rigid andprominent weaves. A fresh takeon silhouettes in lowers is beingexplored. The soft denim, whichis light weight and drapey isseen everywhere mostly in tops,dresses and trousers. Widelegged and office wear style,denim is no more seen as asynonym of casual clothing thisyear with ‘chino’ denim makinga rapid entry in the stores forthe formal section in lightchambray fabrics (presentlyseen at Promod and Esprit). The

FASHIONBUSINESS

HEM VARIATIONElastic cuffs

Brands like Levi’s, Diesel, Zara and Calvin Klien are featuring denimjeans with elastic and constricted hem. Available in both loose andskinny fits, they work well with all kinds of shirts and T-shirts.

Rolled-up hem

First discovered in the catalog of J Crew, the trend of rolled up jeans hasbeen catching up. Available at Zara, Marks and Spencer, Balmain andJ brand, these denims have been flying off the racks.

Zippered hem

Evolving from the super popular skinny jeans, denims have now comewith a side ankle zipper for a super skinny look. Currently, all leadingbrands like 7 for all mankind, Balmain, J brand and Forever 21 areselling them in a wide array of colours. They look extremely stylish wornboth as skinny denim with zipper closed and flared with the zippercompletely or partially open.

As denims are not seasonal and can be wornthroughout the year, this growing rage is an investmentfor all manufacturers, exporters, retailers andconsumers at the moment, and the market is only toget bigger in times to come. With so much to be seenin denim this year, AO further elaborates on the mostfamous trends within this category…

based NPD Group Inc. alsostated that – Form-huggingdenim, around since the middleof the last decade, boosted jeanspurchases during the recessionwith styles like J. Crew GroupInc.’s “matchstick.” Now thenovelty has worn off, with salesof women’s premium denimsliding more than 6 per cent lastyear to $ 1.36 billion. Thoughskinny and jeggings are still tobe seen in fashion, the flarejeans is sure to comeback infashion very soon, observed onthe basis of consumer behaviourwhich is moving towards ademand for change in order tobreak the decade old monotony.

Amongst other styles that aremaking their rounds – long tops,denim shorts, denim vests andwaistcoats and not to be missedboleros are ‘must haves’ for anywoman and are predicted to

ones, who are bored of wearingjeans, are looking out for optionslike trouser fits and jeggingswhich has already trickled downto the mass market. The basicpair of jeans has moved awayfrom its simplicity, withinnovations in patterns, trendystyle-lines and darts to give abetter fit and the dropped crotchis being portrayed as worth a try,even for the Indian consumer.

The market for denim saw asimilar upward swing as beingwitnessed this year, some yearsback with the introduction of the‘skinny jeans’. Women embracedthe fit as it refined their figureand made them look slim andtall. But according to latestreports by retail analysts,retailers from American EagleOutfitters Inc. (AEO) toBloomingdale’s, are betting thatwomen are ready to shed skinnyjeans for a return to flaredstyles, a change that may firmup more than sagging denimsales which were observed in2010. Affirming this, New York-

remain in fashion for quite sometime now. Observing theincrease in popularity, retailersare now concentrating on othergarment pieces to increase thevariety of clothes on offer in thedenim section. A perfectexample for this is Abercrombieand Fitch, who keeping up withits image has projected a calmand very appropriate look forwarm spring and summer dayswith rolled up shorts, high waistand wide legged jeans, denimshorts, light blue or plaid shirts,simple tank tops and shirtswith oversized pockets. All ofthe clothes are to be worn withflip-flops, which are the symbolsof vacation, comfort and fun,and simultaneously canbecome a complete ensemblefrom top to bottom.

Bored with the solid blue andblacks that are forever classics,the colour blocking trend hasfound its perfect translation inthe denim world with coloureddenim and patched denim alsoseen in vogue. For the spring of

DETAILS IN STYLEThere are some very interesting details in denims this year. Low-crotchstyle denims are catching up because of their comfort and style factor.Another stylish trend is the high waist denims that give a dramatic lookand are flattering for most body shapes and styles. A lot of waistbandand pocket variation have been seen with contrast linings and stitching.

Other styles that are making their rounds — longtops, denim shorts, denim vests and waistcoats and notto be missed boleros are ‘must haves’ for any womanand are predicted to remain in fashion for quite sometime now

ELASTIC HEM ROLLED UP HEM ZIPPERED HEM

LOW-CROTCH HIGH WAIST CONTRAST STITCHING


2011, Zara has presented chicminimalist denims in bright,vibrant colours that perfectlycombine into a beautiful,youthful, yet classic collection.There are a lot of fruity colourslike turquoise, fuchsias,oranges, or electric greens andblues, which are easier to wearwith neutrals, white, black orgray. To tone down theshocking effect of these colours

LOWERS IN STYLESkinny fit – Skinny fit jeans have become a basic necessity inevery woman’s wardrobe. Available at almost all leading brands,they come in endless varieties of colour, wash and embellishments.They can be worn with almost anything.

Jeggings – Jeggings are a more comfortable approach towardsskinny jeans. With elastic waistbands, they are easy to wear likeleggings and give the look of skinny denim. Being so much indemand, every brand is offering Jeggings in many colours andfabric options.

Wide leg trouser – Wide legged denim trouser has been themost welcomed trend since the skinny jeans came along. It is aformal-looking denim trouser that can be dressed up or evenplayed down with a simple shirt. First seen on the runway ofCeline, it is now available at GAP, J brand, Banana Republicand Mango.

APART FROM JEANSShorts – Denim shorts are the hottest commodity this year. Highor low waist, they can have trouser styling, pleats, buttons, rippedareas and rolled-up hems. They can be found at GAP, Zara,Promod and Mango.

Dresses – Dresses in plain, bright indigo and glossy denim are ahuge hit at stores like Mango, Zara and Promod. They come in allkinds of styles, like boxy, fitted, flared and shirt-dresses with varyinglengths.

Shirts – The denim shirt has become the new ‘white tee’ of theyear. Available at Chloe, Miss Sixty, Miu Miu, Mango and Zara,they can be combined with jeans, shorts, skirts and can also beworn over summery dresses.

Long tops – On the runways of Derek Lam and Stella McCartney,a lot of loose fitting denim tops were prominent. Made from softchambray fabric, it is currently available in a lot of design variationsat H&M, Acne, Zara and Mango.

Boleros – Short denim jackets or boleros look uber cool wornover fitted T-shirts, dresses and even cotton shirts. With buttondown fronts, oversized zippers, shaped hems, different sleevelengths and collar variations, they have become the most versatilefashion must-have in the market. They can be found at Mangoand Tommy Hilfiger.

Jumpsuits – With the onset of the denim-on-denim trend, thejumpsuit is not far behind. Seen on the runways of Celine, JeanPaul Gaultier and g-star, the denim jumpsuit has entered into thecommercial market through Mango, Promod, French Connectionand Zara.

these denim are paired withneutral colours top forsummers and similarly withjackets and blazers for winters.

Overflowing from the garmentindustry, denim has nowentered in the accessorysegment of the market too.Denim bags are available atPrada, Chanel, Miu Miu, LouisVuitton, Alexander Wang andRalph Lauren in a variety of

shapes, colours, sizes andbuckle and stitch details.Denim footwear is also a ragethis year and can be found atChristian Louboutin, Guess andTrue Religion. Being a hugefashion statement as flatsneakers, pumps, wedges oreven spiky heels in a lot ofcolours, they are also themost desired accessory itemsin the market.

FASHIONBUSINESS

SKINNY FIT JEGGINGS WIDE LEGTROUSER

DENIM SHORTS

DENIM SHIRT

DRESSES

JUMPSUIT

DENIM LONG TOP BOLEROS


INDUSTRYWIRE

CENTEX EXPORTS TO MANUFACTURESCARVES FOR THE BRITISH ROYAL WEDDING…ALSO GOING FOR EXPANSION

INTERCITYTRADER GEARINGFOR MORE IN-HOUSEPRODUCTION

Going by the trend of having one’s own in-house production rather than outsourcingmanufacturing of garments, one morecompany Intercity Traders of Delhi is trying toincrease its in-house production. The companyhas recently added 50 new stitching machinesto eliminate dependency on job workers.According to Ashish Singhania, Director ofthe company, now they have around 250stitching machines which will help them to keepcontrol over quality, lead times along withpricing. “Our lead time for delivery is normally60 days for printed and embroidered programand 75 days for yarn dyed program which nowmight come down a little,” confides Ashish.

Intercity specializes in ladieswear for all agegroups. It is manufacturing value-added ladiesblouses, casual wear with printed designs,beads and sequin work. The company isexporting its products to buyers namely NAFNAF, Religion, Ange, Guess, Isato, DEPT inFrance, UK and Spain.

Ludhiana-based Centex Exports has beencommissioned to manufacture scarves for thepublic during the wedding of Prince William andKate Middleton taking place in the end of Aprilat Westminster Abbey. Centex is the only Indiancompany that has been commissioned in thiscapacity. These exquisite mementos would beavailable to the public under Boden, a popularonline and offline fashion business all over UKand the US.

Centex is famous for producing super-fine stoles.Amongst their many customers are the leadingluxury brands of the world including Burberry,Hugo Boss and Chopard. Last year, Centexcollaborated with Hugo Boss (BLACK) tomanufacture stoles for all the celebrities whoattended the prestigious Berlin International FilmFestival. Vineet Sood, MD, Centex Exportsshares, “It is a singular honour to be asked to

create such an important keepsake for a weddingwhich will be historic. It is also testimony to theskills and quality of Centex that we have beenchosen from across the world to manufacturethis scarf. This is a mark of Indian excellenceand Indian innovation.”

Established in 1969, Centex has catered tosome of the most renowned labels in luxury

business such as Coach, Escada, Mulberry,Hugo Boss, Giorgio Armani, All Saints, BananaRepublic to mention a few. The company hasan annual production of 3 million units of luxuryscarves. “Centex’s constant endeavour has

been to surprise its clients with groundbreakingideas, which emerge from the dedicated researchand development it does,” states Vineet.

Centex which has five units in Ludhiana is nowgoing for a state-of-the art manufacturing facilityin 15 acres of land which is just one km fromits existing set-up. The factory will have in-housedyeing and finishing facilities along withstitching. The plant is expected to be functionalby the end of 2011. With this expansion thecompany would produce 15,000 pieces ofscarves per day.

Intercity's focus ison value-addedladies wear for allage groups

Vineet Sood, MD,Centex Exports

While interacting with the industry, Apparel Online is discovering that garment manufacturersare now planning to make investment on those machines which require least interventionof the workforce. Non availability of labour, spiralling labour wages and other relatedreasons is prompting the manufacturers to go in this direction. This trend is catching up fastin Southern and Western part of India.

Companies like Mumbai-based Dicitex are also looking at robotisation in areas like stackinggoods which would enable them to cut down on manpower (See AO April 16-30, 2011issue). Bangalore-based Keval Clothing, Shahi Exports, Venkatesh Exports, Surat all arenow looking for robotisation. S.P. Jain, Director, Keval Clothing manufacturers of denimand T-shirts says, “We can tackle labour problem with technology only and I am looking forautomated machines to reduce manpower.” Similar views came from Pinakin Garyali ofVenkatesh Exports, Surat: “We are entering in denim business. We are looking for energysaving and automated machines to discard labour from all possible operations.”

AUTOMISATIONAND ROBOTISATIONTO OVERCOMELABOUR PROBLEMS

Scarves collection on the occasion of the Royal Wedding


BHANDARI EXPORTSSTARTS ITS UNIT IN TIRUPUR…IN PROCESS TO GET OEKO-TEXCERTIFICATION; UPGRADES ITS ETP PLANT

Ludhiana-based Bhandari Exports has recently startedits garment production in Tirupur as well.

Nitin Bhandari, Director of the company shares withApparel Online, “Tirupur is India’s biggest hub for garmentexports. As part of our group’s expansion plan it wasvery essential to have a factory here.”

Bhandari’s Ludhiana unit is very well established andcatering to its buyers successfully. “In fact our currentbuyers have also welcomed this step and are veryenthusiastic. And to be fair, Ludhiana and Tirupur havetheir own strengths, so we can have the best at boththese centres,” adds Nitin.

In Tirupur, a total of 150 sewing machines have beeninstalled to start with and at later stage the plant canaccommodate 150 more machines. Initially, 1,00,000units per month would be produced and would go up to2,00,000 units, informs Nitin. “All the fabric is suppliedfrom our Ludhiana unit. We have a capacity to make20 tonnes fabric including yarn dyed and fabric dyed,”he shares. The company has set-up a beautifulshowroom in its Tirupur unit to showcase its ability to dovarious blends.

Bhandari Exports is manufacturing all kinds of productsin circular knits for men, missy and urban, kids. Thecompany offers various blends like CVC, cotton/viscose,viscose/poly, cotton/wool, acrylic, etc. The company’scurrent capacity in Ludhiana is about 3,50,000 piecesper month. With Tirupur, the total production is expectedto cross 4,00,000 pieces/month in about 3 months.“We have set a target of crossing 5,00,000 pieces/month in a year’s time,” confides Nitin.

Bhandari Exports takes compliances very seriously. “Weare already BSCI, WRAP, CTPAT approved, and in theprocess to get Oeko-Tex approval which should bethrough in a month’s time. Also we have upgraded ourETP plant using state-of-the-art biological watertreatment plant,” concludes Nitin.

INDUSTRYWIRE

NITIN BHANDARIDirector,

Bhandari Exports

TT Ltd. is going for expansion in its spinningand garmenting business with a totalinvestment of Rs. 150 crore in the next twoyears. As per its expansion plans, thecompany will be investing Rs. 100 crore toincrease its spinning capacity at Rajula inGujarat. It also plans to invest Rs. 35 crorefor capacity expansion in its garmentsmanufacturing unit at Tirupur in Tamil Nadu.“This expansion would mainly be for ourown TT brand to exploit the huge potentialof the domestic market by leveraging in ourbrand equity. However, we would beexporting some quantity to Middle East andAfrica as well,” shares Sanjay K. Jain,Joint Managing Director, TT Ltd.

The company also plans to invest Rs. 15

TT LTD. GOES FOR EXPANSION35 CRORE GARMENTING UNIT SHARE

crore in Gujarat for generating powerthrough wind for captive use. “Our existingcasual apparels production capacity standsat 3 million pieces per month which wouldbe increased by 50% per annum in thenext three-four years,” adds Sanjay whofeels that entering more into stablebusiness like spinning and garmenting ismore viable preposition vis-à-visgrowing cotton etc.

“We are installing 500 sewing machines,50 knitting machines and computerizedcutting machine and automatic compactor.The whole project will run on clean energy,i.e. wind power,” informs Sanjay accordingto whom Rs. 5 crore has been alreadyspent out of the Rs 35 crores.

Mumbai-based Al-Rkayan Apparels andExports is installing a processing plant inAmbarnath (near Mumbai) with a capacityto process 5,000 garments per day in bothdry and wet process, informs KishanShetty heading the production. Owned byPrabhakar Shetty, the companyspecializes in denim bottoms,manufacturing one lakh units/month. “Ourprocessing unit would be operational inanother three months; presently we areoutsourcing our dyeing and finishing whichwe feel at times becomes quitecumbersome. But with our own unit we’llhave control over quality and lead times,”adds Kishan.

Founded as La-Apparel, the company wasrefurbished and renamed as Al-Rkayan

AL-RKAYAN APPARELS PLANS PROCESSING PLANT

Apparels. Presently the company ismanufacturing 80% for the domesticbrands like Parx (Raymond), Pepe,Westside, Spykar, Killer, Sunnex, Black Soulto mention a few along with its ownbrands – Leonidas (for men) and Lesley(for women).

Europe and Middle East are the countriesfor denim exports for Al-Rkayan. Some ofthe known brands which it is catering to areGanesh (Italy), Unnati Moda (Spain) andGS Good, UK. “We want to increase ourexports provided we get good buyers. Wedo both basic and value-added denimwear,” states Kishan, who also informedthat they are adding more machines toincrease garmenting capacity to around30,000 pieces per month.

West-End Fashions, a Kolhapur-basedgarment manufacturer, is planning to investRs. 3.5 crore in new automated machinesthat would be installed in another twomonths’ time. Although the company ismainly into domestic market, however,about 20% turnover comes from its exportto Europe where the company supplieswomen shorts and bottoms.

Pushparaj Kole, Director shares with AO,“We are facing severe labour problems, ourper day requirement of manpower is

WEST-END FASHIONS TO INVEST RS. 3.5 CROREON AUTOMATION

around 450 workers and operators, butwe are having just 350 workerstherefore we are unable to use our fullcapacities.” To overcome the labourshortage the company’s managementdecided to go for automated machineswhich would help them reduce labourdependence and provide them muchfaster production. “Once we installthese automated machines, I am surewe’ll be able to increase ourbusiness,” shares Kole.

INDIACANVAS

Register as a ‘Responsible Business Trainer’…New Initiative to Scale up Compliance Standards in India

With new compliance regulations beit social, environment or technical

being introduced into the industry on aregular bases it is difficult for the industry tokeep pace and there is an urgent need for apool of trainers/consultants who can guidethe industry and fill the gap for scaling upadoption and compliance in India. Taking thelead, a joint initiative by the Brussels-basedBusiness Social Compliance Initiative(BSCI), the US-based Social AccountabilityInternational (SAI) and the DeutscheGesellschaft für InternationaleZusammenarbeit (GIZ) GmbH, hasundertaken to create such a network thatwould provide and increase the availabilityand accessibility of affordable trainings/consulting to the industry.

As a first step, the project has set up anindependent Centre of Excellence forResponsible Business to develop andmanage the network of trainers/consultants.The Capacity Building Portfolio of theCentre shall comprise training moduleson voluntary standards (includingsupplier trainings), CSR and sustainabledevelopment, and technicalassistance services.

The initiative is inviting applications fromqualified individuals and institutions whowish to be associated with the Centre as acertified trainer/consultant. Selected

candidates based on experience in trainingon compliance issues will undergo a‘Training of Trainers’ through online,classroom and field exposure. Theacceptance of application and short listingwill be complete by the end of April 2011followed by interviews of short listing ofcandidates that are expected to be over byearly to mid-May 2011. The Training ofTrainers will begin in the first week of Juneand the final screening and selection ofcandidates, successfully completing theprogram, shall be completed by theend of August 2011.

Once the training is complete, the trainers/consultants will be certified as being on thepanel of the centre and will be entrusted theresponsibility to deliver trainings on modulesdeveloped by the Centre as well as trainingmodules from other organizations retailedthrough the Centre. The first training by theCentre is scheduled to start in September2011. The Centre envisages conducting atleast four two-day trainings per month with20-30 participants per module in Delhi,Bangalore, Chennai, Mumbai, Tirupur,Coimbatore and Pune. The Centre will offercontinued business opportunities to theassociated trainers/consultants and thetraining venues, training material, cateringand other logistical arrangements will beprovided by the Centre.

Young bloodshows their visionand creativityat PAF

Young blood showcased their vision andcreativity in a recently organized

student project competition at PearlAcademy of Fashion (PAF), Delhi. Morethan 50 post-graduate and under-graduate students from various cities tookpart in this brainstorming event out ofwhich 13 were picked as finalists. Amongthe under-graduate students, Gagan ofPanipat Institute of Engineering andTechnology stood first. His project‘Development of insect repellent wipe forIndian travel and tourism’ industry waswidely appreciated.

Saurabh Chadha of PAF presented aproject on ‘Invisible disability’ and gotsecond prize, while Samridhi Cheema fromSportking Institute of Fashion Technology,Ludhiana caught the attention of thejudges with her project ‘Power problem’.It was a detailed study that howLudhiana’s retailers are unable tounderstand the need of local females.Arushi Sharma of PAF showed the spirit ofentrepreneurship with her project‘Innovation in life style-PMS’.

Among the post-graduate studentsDeepshikha Sharma of Institute of HomeEconomics, Delhi came first. Her project‘Pigment extraction from fungus for dyeingof textiles’ was appreciated for the depthof research. Prasad Barbade of IIT, Delhigot second prize for his project‘Preparation of Chitosan Nano compositesby gama eradiation for wounddepressing application’.

The judges for the occasion includedRajesh Kochhar, Director, Anro Sourcing &Services; Dr. Vinod Shanbhag, AcademicAdvisor, PAF; Deepali Mittal, DesignConsultant; Lipika Sen of Hichki Studios;and Elfa Varma of Eventalya.

More than 50 garment exporters inLudhiana recently discussed hot issues

impacting the industry with an AEPCdelegation comprising Premal Udani,Chairman of AEPC, HKL Magu and VijayMathur. Since many exporters are alsohaving presence in domestic market, shortageof skilled labour and recent imposition ofexcise duty were of serious concern.

Addressing the issues, Udani said thatSMART project is doing good effort towardsthe shortage of skilled labour and theindustry should come forward to supportthe initiative. Comparing Ludhiana withNoida, Udani pointed out that Ludhiana ismuch behind with the annual turnover ofRs. 1,600 crores (apart from big groups)whereas Noida is doing business of aroundRs. 8,000 crores. Udani argued that mediumand small exporters should come up with

AEPC organizes interactive meet in Ludhiana

various proposals that could help theindustry. He said that though the AEPC hasmany beneficial plans but it needed to increaseexporters’ connectivity with the council.

Udani also inaugurated the temporary AEPClibrary for the display of internationalfashion magazines & demo of MPD CLICKonline database from 15th-19th April. Heinformed the exporters present that if theexporters take benefit from this onlinelibrary, AEPC is willing to make it open onpermanent basis also.

A set of books based on productdevelopment was also released at themeet. Local exporters insisted on moreseminars and programmes from AEPC inLudhiana. S.K. Jain of Stanley Industries,Ajit Lakra of Superfine Knitters and AshokJain of Miniking Knitwear were among thelocal participants.

The panel of judgesfocusing on a project



H O M E F A S H I O N F U T U R E

A business structure in the contemporary times has movedbeyond quality and price, and is now defined on the basisof the ‘power to deliver’…, considering this thought as thenew guideline of growth, Mumbai-based BeekaleneBeekaleneBeekaleneBeekaleneBeekaleneFFFFFabricsabricsabricsabricsabrics, is moving ahead in the home furnishing businesswith a wider, younger and a more focused approach thisyear. Young Karan Sehgal,Karan Sehgal,Karan Sehgal,Karan Sehgal,Karan Sehgal, Director Director Director Director Director of the companydiscusses with Apparel Online the new approach with whichhe wishes to take the company forward elaborating on theneed of forward and backward integration, a compositebusiness infrastructure and their venture into the made-ups market…

In the business since the late70s, Beekalene Fabrics isproducing 7,50,000 metres offabric in a month and hoping

to achieve a target of close toone crore metres within a yearfrom now. The vision is toincorporate as many as possibleoperations in-house by backwardand forward integrating thecompany processes. Operatingamid a huge expansion, thecompany has recently doubled itsweaving, tripled its knitting andalso added more finishing anddyeing machines in order toproduce larger quantities of homefurnishing textiles. To be moreinnovative and customized,Beekalene Fabrics has also added20 more value addition machinesfor embroidery for which Karanclaims to have received aphenomenal response. “A businessmodule as composite as we aretrying to create, only adds valuewhere we can demand our ownprice on the guarantee of qualityand timely deliveries,” saysKaran, while further elaboratingon the growing importance ofsuch a structure. “Working withtough markets like Japan andEurope that demand a perfectquality, makes me further feel theneed to have an integratedinfrastructure in place witheverything in-house to reducedependency and in the processenable better time managementand excellence,” he adds.

According to Karan, producinglarge quantities of fabric is notenough. Moving ahead withmade-ups to cater to the retailindustry directly is also what he islooking at as a key to the futuregrowth of the company. All set toput up a catalogue making plantfor home textiles and homefurnishings, Beekalene Fabrics islooking at new methods tomarket his innovative fabric, bothin India and abroad.

The company is also constructingan in-house stitching unit so as tooffer made-ups like curtains forhomes. This new venture of

Beekalene FabricsTHE POWEROF ‘FORWARDAND BACKWARDINTEGRATION’IN HOMETEXTILES…

KARAN SEHGALDirector,

Beekalene Fabrics


reaching out in the market withfinished products will give thecompany an edge over otherfabric manufacturers withmaximum profits and bettermargins, as a finished productcan be sold at a much higherprice than just fabric. “Wehave been well accepted ashome textile manufacturers, butnow the time is right to moveup the value chain as moreand more people around theworld are spending on theirhomes,” says Karan.

Apart from exporting their hometextiles to 20 countriesworldwide, the major buyers thatthe company deals with aremainly wholesalers in India, whosupply it further to the retailers.Despite being such a hugemanufacturer of fabric of a varietyof kinds, when asked about thereason for not catering to a largenumber of garment exporters asan added option, Karan honestlyadmitted that working withexporters is not easy and oneneeds to understand the dynamicsinvolved with exports in term ofquantities, delivery times andquality parameters. “I believe thatexporters are not very organizedin terms of their buying patterns,as they are dictated by theinternational retailer and many atimes they do not appreciate thecomplexity of making a fashionfabric and reject fabrics on smallpretext,” says Karan.

However, with the company’sfabric production going up atsuch a large scale, working withexporters is an option to explore,but at present with such a strongwholesale network, they still finda lot of potential in wholesalingitself. “Exporters need to workwith us from the scratch withadvance booking and betterplanning right from the productdevelopment stage. In textiles,the product cannot be madeovernight, and in homefurnishing everything produced ismade to order. Working with thewholesalers is more systematicand organized, leaving no stocksbehind. Therefore an exporter’sbackward integration needs tobe equally planned to work withus,” he added.

Known for an aggressive R&Dand innovative fabrics, in linewith the new trends in homes for2011, the company is exploring‘poly blends’. Having a fibre baseof cotton, linen, viscose andpolyester, the company has seenan increase in polyester demandas cotton prices continue to rise,with a major shift towards blendsfor which larger volumes arebeing observed. Thus to cater tothis demand at competitiveprices, the company is trying toblend polyester with other fabrictypes to create poly-cotton andpoly-linen fabrics which arecheaper than 100% linen and100% cotton, final product is

H O M E F A S H I O N F U T U R E

enhanced with added valueadditions through embroidery andsubtle embellishments which are arage this year. In prints, bigflowers, leaves and bold patternswill fill the home market making itmore vibrant than ever before.

Predicting an even bigger growthfor home textiles in times tocome, Karan believes that peopleafter many years have startedunderstanding the need of hometextiles and therefore the metreagebeing ordered has gone updrastically. With a turnover ofRs. 50 crores at present, thecompany within a time span oftwo years aims to achieve thetarget of Rs. 100 crores. “Thefuture looks very positive and aswe get into the finished product,there is bound to be a major growthin our business,” concludes Karan.

1 2

Embroideries being used asvalue addition to form motifsof big flowers which are intrend for 2011

2.

1. A sample of poly-linen fabricbeing demanded in largequantities due to increase incotton prices


EXPORTSTATISTICS

Qty & Value in mn Kg & Euro

India Witnesses Significant Growth in UVR tothe EU in 2010 from Euro 16.14 to 17.43

EUEUEUEUEU Import Analysis – Jan. Import Analysis – Jan. Import Analysis – Jan. Import Analysis – Jan. Import Analysis – Jan.-Dec. 20-Dec. 20-Dec. 20-Dec. 20-Dec. 201010101010

3 New FTAsfor US

There are bright chances thatthe new Congress in the USwill take action on three UStrade agreements thathave been gathering dust –US-Korea, US-Colombiaand US-Panama.

Under the proposed US-Korea FTA, apparel qualifyingfor reduced or free dutytreatment under theagreement primarily must becut and sewn from US orKorean yarns and fabrics,similar to the NAFTA rule oforigin. Unique to theagreement is a committeeon outward processing zoneson the Korean peninsula.

The US-Colombia TradePromotion Agreement (TPA)pending action fromCongress for renewal wouldnot only restore duty-freetreatment but also grantreciprocal access to USapparel in Colombia. Similarto the CAFTA-DR andUS-Peru trade agreements,apparel qualifying for duty-free treatment under theColombia TPA must primarilybe cut and sewn from USor Colombian yarns andfabrics. The rules alsorequire the use of originatingvisible lining fabrics, narrowelastic fabrics, sewingthread and pocketing fabricin most apparel.

The US-Panama FTA isexpected to be on similarlines to the Colombia, Peruand CAFTA-DR tradeagreements, wherein TPAapparel qualifying for duty-free treatment under thePanama TPA must primarilybe cut and sewn from US orPanamanian yarns andfabrics. The Panamaagreement also includes aspecial provision for duty-free treatment of guayabera-style shirts cut and sewn inPanama or the US. This ismore lenient than the yarn-forward rule of originotherwise applicable towoven shirts.

SNIPS

Apparel imports by theEuropean Unionregistered positive

growth in both value andvolumes in 2010. While theimports in value terms were onthe upper side at 7.62%increase, the volumes sawmarginal rise of 1.70%. Thoughthe imports started on anegative note both in value andvolumes, the position startedimproving as the yearprogressed, with major thrustcoming in the fourth quarter. Ona quarter basis the first twoquarters registered (-) 2.11%and (-)1.50% decline in volumes,while in the next two quartersvolumes imported by the EUsaw growth of 2.12% and8.39%, respectively. In valuesthe year started with asignificant decline of (-) 9.30% ,but from second quarteronwards the situation improvedwith 3.13%, 16.20% and 22.48%growth in value in thesubsequent quarters.

Another significant trend sawEuropean sourcing shifting tolow-cost Bangladesh, benefitedfrom the surge in shipments tothe EU in the last quarter of21.5% in volumes. The countryclosed the year with 12.18%growth in value and 4.19%increase in volumes. EU’s knitclothing imports fromBangladesh even surged 52% infourth quarter, from the sameperiod in 2009, due to a strongrise in prices. The average priceof Bangladeshi products washowever significantly lower thancomparable to Chinese prices.In the woven clothing market,imports from Bangladeshjumped by 40.5% in value in thefourth quarter. Over the fulllast year, Bangladeshi marketshare rose in volume terms,from 13.8% to 14.1%.

India’s performance over theyear was not as impressive, andwhile value of exports increased

2.22%, the volumes took abeating with a decline of(-) 5.35%. Knitted garmentssuffered the most with declineof (-) 9.58% in volumes and(-) 0.71% downfall in value. On aquarter bases too India could notshow positive gains in volumesin any quarter, though the EUsaw a massive surge in volumesin fourth quarter as mentionedabove. In terms of valuehowever, India recovered afterthe first quarter wherein itregistered negative growth of

(-) 9.43. Thereafter theremaining quarters of 2010 sawpositive growth in value of5.34%, 5.69% and 13.53%. Thisclearly indicates that the UVRwas on the increase and overthe complete year India sawUVR grow from Euro 16.14 in2009 to Euro 17.43 in 2010.

In the meanwhile, China’smarket shares started slightlydecreasing in volume terms andit could register an increase ofonly 2.63% in total volumes in2010, with knitted garments

EU GLOBAL APPAREL IMPORTS — JAN.-DEC. 2010

TYPE OF Jan.-Nov. 2009 Jan.-Nov. 2010 % increase/decrease

APPAREL Qty Value Qty Value Qty Value

WORLD

Knitted 2309.92 27894.90 2374.28 30676.38 2.79 9.97

Woven 1940.03 29461.88 1947.95 31052.01 0.41 5.40

Total 4249.95 57356.78 4322.22 61728.39 1.70 7.62

CHINA

Knitted 1042.93 11486.83 1089.29 13018.17 4.45 13.33

Woven 1112.86 14136.18 1123.27 15168.58 0.94 7.30

Total 2155.79 25623.01 2212.56 28186.75 2.63 10.01

INDIA

Knitted 149.06 1919.92 134.78 1906.22 -9.58 -0.71

Woven 105.3477 2187.11 106.03 2291.96 0.64 4.79

Total 254.40 4107.03 240.80 4198.18 -5.35 2.22

BANGLADESH

Knitted 408.65 3445.73 436.66 4025.63 6.85 16.83

Woven 170.35 1692.71 166.61 1738.84 -2.19 2.72

Total 579.00 5138.45 603.27 5764.46 4.19 12.18

SRI LANKA

Knitted 37.40 647.96 39.62 659.13 5.95 1.72

Woven 31.04 516.41 31.17 535.45 0.42 3.69

Total 68.44 1164.37 70.80 1194.58 3.44 2.59

PAKISTAN

Knitted 61.02 352.00 61.79 410.20 1.27 16.53

Woven 55.18 540.87 54.84 572.52 -0.62 5.85

Total 116.20 892.88 116.63 982.72 0.37 10.06

VIETNAM

Knitted 32.34 328.24 30.65 379.47 -5.24 15.61

Woven 56.38 869.27 56.55 970.33 0.30 11.63

Total 88.72 1197.51 87.20 1349.80 -1.72 12.72

TOTAL AVERAGE UVR OF APPAREL IMPORTS — JAN.-DEC. 2010

World China India B’desh Sri Lanka Pakistan Vietnam

2009 13.50 11.89 16.14 8.87 17.01 7.68 13.50

2010 14.28 12.74 17.43 9.56 16.87 8.43 15.48


EXPORTSTATISTICS

Percentage Value Imports of Two KeyCategories by the EU

Exports to EU

APPAREL TYPE Total Imports by EU China India Bangladesh Sri Lanka

2009 2010 2009 2010 2009 2010 2009 2010 2009 2010

Babies Wear 1,852.21 1,948.98 1,201.61 1,264.57 181.97 186.11 130.97 162.83 45.44 49.06

Foundation Garments 1361.29 1,432.97 723.50 784.65 8.63 7.96 26.68 28.92 125.14 140.47

Jackets & Blazers 1,849.56 2,008.15 949.55 1,038.97 37.99 42.03 16.31 17.81 15.64 12.29

Ladies Blouses 2,225.08 2,313.96 703.17 763.11 594.58 629.56 88.80 96.32 41.49 42.81

Ladies Dresses 2,811.04 3,437.73 1,261.22 1,590.25 506.73 568.42 74.17 89.49 34.85 47.81

Ladies Skirts 1,069.71 1,016.88 463.36 434.52 131.05 108.72 34.52 36.88 37.34 35.23

Legwear 1,452.99 1,575.46 500.83 589.74 17.11 15.83 1.89 1.66 16.72 16.19

Men’s Shirts 4,277.92 4,571.72 1,178.08 1,306.88 537.01 554.98 666.55 731.11 45.32 42.72

Nightwear 2,478.19 2,560.19 1,211.77 1,301.91 281.49 265.96 95.75 125.24 142.23 152.10

Suits / Ensembles 829.48 809.60 395.03 379.46 31.58 32.70 6.64 9.36 0.90 0.91

Sweaters 8,075.91 8,524.01 4,197.28 4,544.21 204.51 192.02 1,210.55 1,344.90 73.06 63.71

Trousers 11,171.54 11,819.36 4,191.47 4,517.90 419.44 404.25 1,216.17 1,284.10 252.18 258.47

T-Shirts 6,496.77 7,085.92 1,321.71 1,483.64 675.84 664.73 1,373.68 1,588.61 185.47 166.30

Undergarments 708.85 726.14 391.37 356.19 54.82 60.22 17.81 27.01 49.19 47.59

Value in mn Euro

ITEM-WISE VALUE INCREASE IN APPAREL IMPORTS BY EU: JAN.-DEC. 2010

Percentage Quantity Imports of Two KeyCategories by the EU

Exports to EU

APPAREL TYPE Total Imports by EU China India Bangladesh Sri Lanka

2009 2010 2009 2010 2009 2010 2009 2010 2009 2010

Babies Wear 127.01 125.49 85.07 82.94 11.61 10.72 11.51 12.64 2.76 3.07

Foundation Garments 47.50 49.20 33.10 35.20 0.20 0.21 1.13 1.30 2.81 3.00

Jackets & Blazers 103.11 102.94 68.44 67.18 2.07 2.15 1.80 1.70 1.17 0.96

Ladies Blouses 89.09 91.21 29.86 32.31 22.17 22.02 6.77 6.90 1.99 1.90

Ladies Dresses 115.28 140.38 54.39 68.55 19.37 20.67 6.97 7.90 1.89 2.55

Ladies Skirts 56.53 53.83 27.85 26.16 5.57 4.51 3.21 3.47 3.25 2.91

Legwear 185.41 191.64 89.62 101.25 1.80 1.58 0.25 0.19 1.47 1.41

Men’s Shirts 283.57 287.63 84.74 88.68 31.41 30.10 72.03 73.84 2.55 2.68

Nightwear 239.40 235.64 135.57 135.01 30.80 26.33 11.56 14.08 6.59 6.93

Suits / Ensembles 58.59 54.55 42.26 38.41 2.04 2.02 0.77 1.13 0.09 0.07

Sweaters 582.40 565.79 295.23 291.69 15.14 13.35 123.52 123.90 4.34 4.04

Trousers 905.60 922.04 424.42 438.29 29.68 27.55 133.72 136.30 20.13 20.90

T-Shirts 552.40 563.19 19.21 121.70 50.00 45.21 187.04 198.37 10.87 10.26

Undergarments 69.60 67.00 45.99 43.15 5.83 5.73 1.91 2.61 2.62 2.64

Quantity in mn Kg

ITEM-WISE QUANTITY INCREASE IN APPAREL IMPORTS BY EU: JAN.-DEC. 2010

better positioned at 4.45%,while woven garments couldregister only 0.94% growth.Despite that Chineseshipments accounted for45% of total Europeanimports. In value terms thecountry saw growth of 10.01%with significant gains in lasttwo quarters of 21.77% and26.19%, respectively after anegative start in the firstquarter of (-) 9.41. TheUVR of the country stoodat Euro 12.74

Sri Lanka’s exports wereapparently not affected by theremoval of the GSP+duty-freestatus and the countryregistered growth in bothvalues and volumes of 2.59%and 3.44%, respectively. In factin the last quarter the countryregistered growth in value of15.38%. The volumes howeverremained steady throughoutthe year with no significantswing. The UVR of thecountry understandably took adip from 2009, dropping fromEuro 17.01 to Euro 16.87.

Nearly all clothing importcategories experienced adouble-digit growth in valueterms, in fourth quarter. Overfull 2010, imports grew at alower pace, but were inpositive territory by contrastwith the decline of 2009. Therise in prices reached anextremely high level forspecific categories, like suitsand trousers where theyjumped by 21.65% in valueterms. In T-shirts prices wereup 12.27%, while pulloverprices gained 11.68%.

For India the only productcategories that registeredsignificant growth was ladiesdresses which saw anincrease of 6.71% in quantitiesand 12.17% rise in volumesover the year. The categorywas also the only significantgrowth segment for theEuropean Union whichregistered growth of 21.77% involumes and 22.29% increasein value. A major category forBangladesh men’s shirts saw2.53% growth in volumesand 9.69% increase in valuefor the country.


Ladies dresses a growth segment for most countries

The EU is importing dresses in good quantities and in the period under review it had imported140.38 million kg of dresses worth Euro 3,437.73 million which is a 21.77% increase involumes and a 22.29% gain in value over the same period last year.

For China also, ladies dresses were an important growth segment with quantities in 2010being 68.55 million kg exported to the EU worth Euro 1,590.25 million, an increase of26.09% in value and 26.05% rise in volumes.

In Bangladesh too, dresses were a major growth segment in 2010, though the category isnot among the top earners for the country. The country exported 7.90 million kg of ladiesdresses worth Euro 89.49 million; the segment saw growth of 13.25% in volumes and gainof 20.65% in value.

For India, dresses have always been a winner and even during the recession the productbrought business to the country. India exported 20.67 million kg worth Euro 568.42 millionof dresses to the EU during the year. The segment has seen increase in both volumes andvalue of 6.71% and 12.17%, respectively.

Ladies blouses important for India

Though ladies blouses are not among the large volume products imported by EU, it is animportant category for its high value. In 2010, the EU imported 91.21 million kg of ladiesblouses worth Euro 2313.96 million, registering growth of 2.38% in volumes and 3.99% invalue over last year.

Though the volumes are smaller than that of China, for India, ladies blouses are a majorcategory and the country exported 22.02 million kg as against China which exported 32.31million kg in 2010. For India the export of blouses was worth Euro 629.56 million; however,the product registered a marginal decline from the same period last year in volumes thoughit saw growth in values of (-) 0.65% and 5.88%, respectively.

Bangladesh has crept up the value chain and today it has made some inroads into the ladiesblouses segment, though it is still a small player in the category with volumes of just 6.90million kg worth Euro 96.32 million of exports in 2010. The growth in the segment was1.88% in volumes and 8.47% in value.

Trousers the biggest import segment for EU

The biggest import category to the EU in 2010 was trousers with total 922.04 million kg ofvolumes imported worth Euro 11,819.36 million. The segment saw growth in both valuesand volumes, which were up 5.80% and 1.82%, respectively.

For China also the biggest category in terms of quantities was trousers with export of 438.29million kg to the EU worth Euro 4,517.90 million an increase of 7.79% in value and 3.27%rise in volumes.

Trousers are the third major category for India with volumes of 27.55 million kg of exports in2010 worth Euro 404.25 million. However, the segment has seen decline in both volumesand value of (-) 7.18% and (-) 3.62%, respectively.

EU IMPORT ANALYSIS – JAN.-DEC. 2010


RESOURCECENTRE

The Turel Classic 2011 expo organized by E H Turel and Company held in Bangalore recentlywas a treasure trove of the latest machines from Germany, Italy and Taiwan. Top names likePFAFF, Vibemac, Macpi, Kingtex, Typical, Maier, Bella, Japsew, Kaiyu, ASS BASS and Maicashowcased their latest innovations for the garment industry at the three-day event.

LABOUR SAVING TECHNOLOGYTHE MOST SOUGHT-AFTER ATTUREL CLASSIC SHOW

Many exporters and domesticmanufacturers visited theshow seeking latest technology.

Much interest was generated forstructured garments. “The domesticmarket in the ready-to-wear segment isgrowing at a tremendous rate and wehave seen the demand for machines forcasual and formal trousers and jacketsgrow by around 25% since the startingof 2011,” revealed Viraf Turel, MD,EH Turel & Co. “We are here topurchase machines for suit lines andtrouser lines. We are both upgradingand expanding with a new factory. Whatwe are looking for is better efficiencylevels with new technology andmachineries,” added Girish Amarnaniof Arviva Industries.

Madhukar from Shahi was looking atinvesting in 1500 machines includingutility. “We are looking for machines toreduce manpower,” he said. A teamfrom Levis Strauss was looking formachines involved in denim productionto attain better quality in denim

garments. “We are looking forautomated machines as we want todecrease labour’s role which is gettingexpensive each year. With automationwe’ll get better quality,” said V. Kumarfrom the company.

There were many other companies thatwere not looking for product-specificmachines, but for technology to improveproductivity. “We make shirts, jeans,trousers, ladies top, kids’ garments,and knits for multi brands showroomCherma. We want to upgrade ourproduction quality with bettertechnology as that is the only way tosustain business and grow,” saidDevender Shah, GM, SinghCasuals, Hyderabad.

E H Turel and Company has beenregularly organizing such shows andthe management was very happy at theresponse. “The year 2010 was definitelya better year than 2009 for technologyproviders, and the need of the hour isautomation, so there is labour savingand the quality of production is higher,

with the machines being easy to useand more flexible with variousoperations,” said Turel.

Turel with his vast experience furtherstated that when it comes to buyingmachines, each country has its ownspecialization like for jeansmanufacturing Italian machines are thebest, for jackets and trousers it is theGerman brand PFAFF and othermachines made in Germany and forknits the Taiwan companies are verygood and popular.

For all the machine brands present atthe show, India is a huge potentialmarket. Alessandro Signorini, SalesManager, Vibemac, Italy and VeeruMakhan, Sales Manager, India wasvery busy meeting customers andexplaining the technology of theirmachines. The 30-year-old companyhas been working on R&D and is thefirst in the world to have double colourstitching machines. “Double ColourTechnology’ makes it possible to stitchwith two different colour threads,

(From right) Girish Amarnani of Arviva Industries in conversation withViraf Turel, Andreas Korz and Joachim Richter of PFAFF Industry players take interest in the technology on display at the event


stitch lengths and thread thickness inone shot. The company had the samecollection of machines as last year andSignorini was happy with the way 2010had progressed compared to 2008-09.“Our sales increased by 65 per cent inIndia and we have 7-8 new projects. Theyear 2011 is also looking very good andthe business in the first quarter has beenso good that we have already achievedour target. We sell in 55 countries, butIndia is No. 1 in sales for us followed byBangladesh and China. The technologyshown last year was created a year-and-a-half ago and the company willunveil its new machines at Texprocess atGermany in May,” stated Signorini.

For M.A.I.C.A. 2010 was animprovement after two years of lowsales. “From September 2010 it hasbeen very good. In 2011 we want toincrease the collection and get newcustomers. For us India is a veryimportant and best market which wewant to develop further. We had anoffice here from 2005-08 but closed itdue to recession, anyhow we arestarting an office again. Thesemachines are totally new for the Indianmarket,” said Tomaselli Andrea,Technical Director of M.A.I.C.A.

Lothar Laier, Area Sales Manager,M.A.I.C.A. was very busy and happywith the company’s progress with theblind stitch machinery which is aspecial range that is used by fewfactories. For M.A.I.C.A. 2010 startedslow but improved by the middle of theyear and from September 2010 it hasshown a steady growth. Laier hopes toincrease sales by 30 per cent in 2011which is a good projection but not asgood as in the past. With 3 machines ondisplay which were for bottomhemming, belt loops and waistbandfelling, the company is doing good sales.

Gian Pietra Rossi, Sales Managerfrom IMA and Macpi informed that thecompany was showing both new andimproved machines for both the brands.“Our machines combine productivityenhancement, energy saving andflexibility and are easy to use,” statedRossi. For the company, the year 2010was an average year but 2011 looksbetter with overall growth. “Countrieslike Bangladesh, Vietnam and Sri Lankaare having expansion and the Indianmarket is also growing very well. About20 per cent of our business comesfrom India, so it is very importantfor us,” he concluded.

The three-day event saw good visitation from the industry

When it comes to buyingmachines, each countryhas its own specializationlike for jeansmanufacturing Italianmachines are the best, forjackets and trousers it isthe German brands and forknits the Taiwancompanies are very goodand popular

RESOURCECENTRE


RESOURCECENTRE

Every link in the textilesupply chain has an

important role to play to keepthe chain moving towardsgrowth. While it cannot bedenied that garmentmanufacturers, looking for thebest price in fabrics areincreasingly working directlywith the manufacturers, thereare many who prefer to workwith wholesalers not only for theoption in products, but also theflexibility of operations. One suchMumbai-based supplier of denimfabric, RCBC has positioneditself strongly as a reliablesource for jean manufacturersboth in the domestic andinternational market.

With over two decades ofexperience, RCBC is a reliablename in denim fabrics, sourcedfrom many Indian mills. Brandslike Killer, Spykar, Levis, Lee,Wrangler, PEPE are some of thebuyers of the company. “Whatreally works in our favour is the

RCBC Supplying Denim to Brands with Variety and Flexibility

fact that we can offer small runsin many styles and today most ofthe brands want variety on theirshelves not stacks of samestyles,” says Rajat Vora, MD,RCBC. With the option to pickup new developments frommany mills the variety on offer ishuge and for the brands itpresents a one-stop-shopsolution, saving on critical timefor fabric selection duringproduct development andeventually final production.

Another major advantage forjeans manufacturers to workwith wholesalers is the flexibilityof operations, whether it ispayment terms or deliveryschedules. “Since we make theinvestment on stock, the brandsare confident that they can pickup the fabric at short notice,though we do take time on fabricwhich is very specific and made-to-order,” says Vora. Being asupplier in no way means thatthe company is only distributing

fabric; in fact, RCBC is activelyinvolved in the fabricdevelopment and studies trendsboth seen in the Indian andinternational market to work inclose cooperation with the millsto develop on similar lines.

“No player in the textile supplychain can afford to be passiveand it is important for everyoneto be alert to new concepts,finishes and constructions,more so in a fashion product likedenim,” reasons Vora. Though

the company is working withsome exporters, they prefer tointeract with the local brands.“We find that exporters are verydifficult to work with, not onlydo they squeeze us for prices,but they want huge credit timefor payment, whereas localplayers go by the fabric qualityand design and are betterpaymasters,” argues Vora. Hefeels that garment exportersneed to be more pro-activewith the fabric suppliers toinduce confidence that workingwith them is interesting andnot a struggle.

Very optimistic of the future oftextiles in India, Vora isunhappy with the way theGovernment has neglected thesector. “It is the entrepreneurskills of the players in the textilechain which has kept thisindustry alive and growingimage what could be achieved ifthe Government supports us,”he concludes.

Rajat Vora, MD, RCBC


RESOURCECENTRE


Delhi-based buying agencySubala’s is looking for

good high fashion ladiesgarment manufacturers. Thebuying office catering toMiddle East and Europeanbuyers is already workingwith many high-valuemanufacturers. Talking abouther requirements for highvalue garment manufacturerswith Apparel Online, MonitaSehgal, the founder of Subala’s says,“High fashion garments to me is just nothighly embellished garments. It’s all aboutgood fitting, complimented with specialembroidery techniques and differentkinds of fabrics used in a garment in avery creative way.”

Presently the buying agency is sourcing itsgarments from exporters like Orient Craft,

SUBALA’S LOOKING FOR HIGHFASHION GARMENT MANUFACTURERS…PLANNING TO ADD HOME FURNISHING AND HANDICRAFTS TO ITS PROFILE

Span India to mention twoprominent ones. The FOBprice of the garmentsprocured starts from US$ 10 to US $ 60. “I amlooking for some verycreative garmentmanufacturers who can offerme good costing as thesedays buyers are negotiatingvery hard. High fashiongarment should not mean

high quotes and margins from the vendor’sside,” adds Monita who started her buyingoffice in 1990. Riva of Kuwait and Macit ofItaly are one of her biggest buyers.

Other than garments, Subala’s is alsosourcing high fashion accessories andjewellery for its buyers. Now the agency isalso looking at starting sourcing of homefurnishing and handicrafts.

TEDDY OF ITALY OPENINGSOURCING OFFICE IN INDIA…Looking at sourcing ladies dresses andscarves from Delhi/NCR region

With over 600 stores, Teddy S.p.A. is one of thepromising clothing companies in Europe with a

turnover of Euro 300 million. Known for retailingmen’s, ladies and kidswear, Teddy’s sourcing is Asiacentric like any other international brand and retailer.With sourcing offices in China and Bangladesh, nowthe company is all set to open its liaison office inIndia… precisely Mumbai.

As of now, the retailer is sourcing 4 million pieces ofgarments from India. Francesco Bellino who ispresently based in Mumbai for setting up the officeshares with Apparel Online that right now the companyis sourcing woven men’s shirts from Mumbai andknitted garments for ladies, men’s and kids fromTirupur, but once their liaison office is fully functionalafter the registration formalities, they will start sourcinggarments from other regions as well. “I am particularlylooking at sourcing ladies dresses in sheer fabricsand scarves from Delhi/NCR region,” says Francescowho is also looking for knowledgeable merchandisersfor Mumbai office.

Teddy has four brands namely-Terranova, TerranovaKids, Calliope and Rinascimento.

MONITA SEHGAL

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