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ANALYSIS
REGULAR FEATURES
COVERSTORY
Denim Industry - A Critical Note
Nitin Parekh
Chief Executive Director - Ashima Limited, Ahmedabad
This article penned by Shri Nitin Parekh gives a very critical and a comprehensive view of the status of "Denim Industry" in India. He gives an account of the present scenario and the future potential vis-à-vis global development. The article gives an account of how the demand for denims has increased in India and world wide over the years. Information about the denim production capacity and demand patterns in India are described in detail. Mr. Parekh says- "Indian Denim industry has seen the ups and downs of profitability in tune with global trends". "The sensitivity of India's denim industry with world trends is justified given the fact that India produces much larger denim fabrics compared to the domestic consumption", he added.
- India has a long-term sustainable global competitive advantage in Denim
- Rajiv Dayal
Chief Executive Officer - Mafatlal Denims (AMG Group), Navsari
Rajiv Dayal observed that the Indian Denim manufacturing capacity increased from 350 million meters per annum (MMA) over the last two years. He attributes the increase in capacity to the new entrants as well as expansion of capacity by the existing manufacturers. According to Mr. Dayal the Indian denim market size is estimated to be around 200-225 MMA with a growth rate of around 10 per cent per annum. Mr. Dayal says that "Mafatlal Denim has been, and will continue, to be producer of value added, differentiated denims, for the mid/upper segment brands. We are operating to full capacity through our strategy of focusing on product development and innovating products based on global trends; increasing our exports, specially to EC and new emerging markets and offering new collections to our customers/brands in India". Commenting on the Indian denim manufacturing facility and the growing market he express "I believe that India has a long term sustainable global competitive advantage due to th e availability of raw material (cotton), state-of-the-art manufacturing capability, capable managerial talent/technical personnel and world-class design capabilities". Mr. Dayal concludes on an optimistic note "Indian textile manufacturers will grow even in a fiercely competitive world!"
FACE 2 FACE
"The industry should think of the measures which can provide stability to the market at the current price level"
Ashish Shah
Managing Director - Aarvee Denims and Exports Limited, Ahmedabad
 Aarvee Denims and Exports Limited claims to be India's second largest denim manufacturer. With their plant located close to Ahmedabad in Gujarat the range of products manufactured by them include Denim Garments (Jeans, Trousers, Jackets, Shirts etc. for every age group male and female), Cotton Garments, Home Textiles etc. They also run a captive power plant with a mission to bring down the energy cost which currently hovers around 11 per cent of the sales to 6.5 per cent within next two years to make their costs most competitive. ADEN and MTEX are their brands which cover exclusive range of bottom wear and denim fabric respectively. The group is looking forward to doubling the current turnover to touch Rs. 425 crore by 2007.
In an involved discussion Face2Face with TEXTILE REVIEW, Aarvee's Managing Director Mr. Ashish Shah makes some frank observations about the Denim Industry today and its prospects in the global perspective in the times to come. In the process he also defines the roadmap for his group to maintain the continued progress. Mr. Shah visualizes that "More than 50% of denim fabric of our country is from Ahmedabad and in that sense Ahmedabad is the Denim Capital of the country. Because of the history of textile industry, the city has advantage in terms of skilled manpower. The issues are higher power costs and non availability of manpower for garmenting".
TREXCLUSIVE
- "The vision & target should be very ambitious"
- Sanjay Lalbhai
Managing Director - Arvind Mills Limited- Ahmedabad
In an exclusive interview with the Textile Review Sanjay Lalbhai, Managing Director, Arvind Mills Limited says that "Garmenting industry being labour intensive there is still hesitation among entrepreneurs to set up world class garmenting capacity which means one to two million garments a month!! Turkey, Pakistan and Bangladesh have such large garmenting units". China, USA, Mexico, Brazil, Turkey, Pakistan, Bangladesh & Indonesia are India's major competitors in Denim Industry. India ranks 3rd or 4th after China, North America & Turkey in terms of volume production. The latest estimate for the world manufacturing capacity is 5.5 to 6.0 billion mtrs. p.a. India maybe around 10% of this capacity. The interview provides an interesting reading with a message from Sanjayji which says that "I think the vision & the target should be very ambitious. However we as a country & Industry we have a challenge ahead to provide the appropriate policy frame work particularly labour policy".
ANALYSIS
- Cotton - the textile fibre in focus
- Dr. Chandan Chatterjee
General Manager - (Industrial Extension Bureau (iNDEXTb), Gandhinagar
This article updates the TEXTILE REVIEW readers with latest developments of Organic Cotton. In India cotton is the backbone of our textile industry, accounting for 65% of total fibre consumption in this sector. Cotton out put has shown a record growth of 270 lakh bales in the Current year of 2005-2006 (Oct-Sept.) as against 244 lakh bales during previous year. India presently being the second largest producer of organic cotton is expected to emerge as the world's number one producer of organic cotton in the next cropping season whose data will be available by June 2007. Dr. Chatterjee observes that Cotton will be one of the major export items from Gujarat for the next few years. Productivity of cotton (yield) in Gujarat is highest (655 Kg. /ha.) in the country. Even then, we are far behind of China and Brazil (1150 Kg/ha) or Australia (1800 Kg/ha). So there is a room to grow". At length he concludes by saying that "Gujarat is going to see a strong and complete value chain of Textile from cotton to yarn, fabric, Made-ups and Garments. States like Gujarat will continue to be all time competitive in Cotton and Cotton Textile world".
Application of CAD/ CAM in Garment Industry Dr. P. A. Khatwani - Head & Ms. K. S. DESAI - Lecturer
Department of Textile Tech., Sarvajanik College of Engg. & Tech., Surat
This article explains about the features, availability & future of CAD/CAM systems. Computerization of the Garment manufacturing would be advantageous in terms of faster designing, production of Garment & quick visualization of Garment resemblance on the monitor screen for different type of clothes. Computers are widely used in this field mainly for developing different cutting patterns in different sizes according to the type of garment required. Dr. P.A. Khatwani & Ms. Desai observes that "with the development in 3-Dimensional design, it has also become possible to scan the measurements of an individual infront of a scanner, the measurement being recorded and with the help of that, the appearance of the desired garment on an individual can also be visualized directly on the monitor screen".
NEWPROJECTS
A Special Feature on upcoming a new projects in textile sector has been introduced. This section provides information about:
- Tirumala Cotton & Agro Products - setting up a spinning mill at Thimmapuram in Guntur district (Andra Pradesh)
- Alps Industries - setting up a new cotton and blended yarn facility at Haridwar (Uttaranchal)
- D. J. Machinen Fabrik- setting up a spindles spinning mill at Sangareddy village in Medak district (Andra Pradesh)
- SEL Manufacturing Co - implementing a major expansion programme at its spinning mill at Ludhiana (Punjab)
NEWSSNIPPETS
A regular feature covering news on the topics - Govt learns 38 projects for textile industry, Need to extend TUF Scheme, Bombay Dyeing launches Country Romance Collection of Bed & Bath Linen, Prof. Deepak Kulkarni & A. S. Sisodiya nominated on Textile Ministry committee, BSL to ramp up capacity at surat SEZ, Premium jeans brands usher denim nirvana, Capturing children's apparel market in India, Textile ministry designs 24 parks for Rs 1,000 cr, orient Craft ties up with European clothing firm, Anglo-French brand Dormeuil looking for garment partners, Athlete with Pro Clothes.
STATISTICS
A regular feature deals with the statistics covering Domestic Deliveries of All Spun Yarn Including SSI Units, Attitudes Towards Denim (Percentage who Love/Enjoy Wearing), Employment in Textile And Allied Sectors, Statement on Availability of Man Made Fibres, Installed Capacity of Man-Made Fibres, Production of Man-Made Fibres, US Apparel Imports From China And India.
TEXTILE STOCKSCAN
Under the regular feature experts Dilip and Rushik Bhatt this time discussed about - Aarvee Denim and Exports Limited. In 1992, "Amtex India" a private limited company converted into public Limited as "Arvee Denim and Exports Limited". Aarvee is India's second largest denim manufacturer and one of the global leaders of yarn dying-weaving, manufacturing indigo denim and denim products. During last five years Aarvee has pushed up the production by 30% to 40%, presently the company has weaving capacity of 72 million metres, spinning of 30 metric tonnes and 15 lakh pieces of readymade garments per annum. As a second largest manufacturer of denim garments Aarvee has denim product like "Basic Indigo Blue Denim, Ring Denim, Flat finish Denim, Silk Denim, Stretch Denim". Aarvee owns brands like "ADEN" and "AMTEX" and also supplies major part of its production to Pantaloons Retail for its brand named "BARE". In the current situation, Aarvee has stagnanted on YOY basis due to fall in demand of den im products globally where as domestic market and non-denim products provided some strength to the performance on QoQ basis. Sales figures show growth of 23% and profit of 60%.
Arvind Mills Limited an ISO 9001:2000 and ISO 14001 certified was established by Lalbhai brothers. Arvind Mills was facilitated by all form of textile divisions i.e. spinning, weaving, dyeing, bleaching, finishing and mercerizing under one roof. Arvind Mills entered into joint venture for marketing of various brands owned by VF Corporation (US). In this joint venture Arvind Mills holds 40% equity in $33 Million project called VF Arvind Brands.
Arvind Mills that started with a share capital of Rs 25,25,000 in 1931 was the first textile company in India to issue GDRs in 1992-93. The company is involved in denim and non-denim products. The slowdown in demand of denim reflects in the overall sales figure for last couple of quarter. 8% fall in sales figure is seen on YoY basis. Fall in sales figure and heavy expenses reflect on income front reducing it by 85% on YoY basis and 17% on QoQ. Arvind Mills now are stated to be focusing on the garment segment aiming at increasing at the capacity in garment department by next financial year. An equity joint venture with VF Corporation (US) should also make a positive contribution in long term. The recommendation from the analysts reads- "For stock movement one should keep booking profit at higher levels or trade between Rs.47 and Rs. 56".
A regular monthly feature giving 52 week high / low and previous as well as current mid month quotation of around 40 textile companies with market cap in excess of Rs. 100 crore.
EXPORT TRADEINQUIRY
A regular feature.
CAREEROPPORTUNITIES
Career Opportunities a profile of The Dattajiroa Kadam Education society for Textile & Engineering, Rajwada, Ichalkaranji, Maharashtra.
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