Denim’s promising growth

Despite rising cotton prices and margins taking a hit, denim companies in Ahmedabad

are anticipating brighter days and are ramping up capacity. At an investment of Rs 100 crores, Nandan Exim, the denim arm of Chiripal Group, is expanding its capacity from 30 million metres per annum to 50 million metres per annum. Jindal Worldwide is also upbeat about the denim market and is in the process of increasing its denim capacity to 35 million meters per annum from the current 20 million metres. Aarvee Denims and Exports recently increased its denim production capacity by 20 per cent.

Denim makers are expecting better demand in both domestic as well as overseas markets. The domestic denim market has seen a momentum in growth, which is likely to continue at least for the next two years. The denim consumption in US is around 35 to 40 pairs per person, while in India it is still five pairs. Hence, the denim market in India can be said to be thriving. Denims have overtaken sales of cotton or casual trousers and are likely to be the frontrunner for many years. Denims have undergone significant changes especially in fabric and color. International brands like Levi’s and others are fuelling the denim revolution in India.