Positive Q4 margins cheer denim players

Despite over supply in the market, denim fabric

manufacturing firms have shown considerable rise in margins for the fourth quarter of the fiscal ended 2012-13. The denim industry, led by Arvind, Aarvee Denims & Exports, KG Denim and Nandan Exim among others, saw bottomline increase manifold in Q4 of FY '13. Industry experts have attributed the positivity to growth in domestic market, drop in raw material prices along with success of value added products.

Though exports are still suffering, the domestic market saw growth as far as denim fabric and finished goods is concerned. Even the demand for denims grew in rural areas too. And despite competing scenario, top denim makers’ foray into functional and value added denim products further helped the growth of the category.

On the other hand, on the fashion retail side, citing low consumer demand for denims, and also in the face of stiff competition from non-denim quarters — trousers, chinos, cargos — denim brands including Levis, Lee, Wrangler and others are a worried lot and putting in efforts to scale up the low denim consumption in India. In the pipeline are plans to ramp up retail presence, sell denims on EMIs or even sell non-denim apparel within stores to boost walk-ins.