Bhaskar Denim: Adding capacity to increase market reach

Vertically integrated denim fabric player Bhaskar Denim is keen on adding more looms to up the fabric production capacity by 5 lakh meters a month. It already has a capacity of 35 lakh meters a month. Explains V Ganesh Ram, G M Marketing,

Bhaskar Industries, “We are one of the largest denim-makers in India and will expand by adding more looms to our current 24 looms. We sell to top domestic brands, exporters and in the overseas markets. We are also looking at increasing production and may add one more slasher range to our operations. People’s expectations of fabrics and garments are very high these days, so we want to create a fabric that can give good value in terms of the garment.”

Ram opines the overall denim market in India is very positive with customers showing healthy buying trend. Indeed people have become quality conscious and don’t hesitate to buy a good pair of jeans at Rs 3,000 or Rs 4,000. They consider the brand, fabric quality, mill profile, yarn, construction, colors and fashion aspect while making purchase decisions. The growing awareness among Indian consumers, even in small towns is helping denim brands create a niche for themselves.

All this has helped in fuelling demand for denim fabric. In last three years the growth capacity of all denim mills has gone up. Either they have added looms or dyeing units with one slasher range. Denim itself has witnessed a lot of changes. “It’s not just about indigo blue or simple mercerized or coated denim anymore. There is a strong demand for indigo knits. So far you have had only woven yarn, now we have indigo knit yarn. Then eco-friendly range of khadi denim, bamboo denim is picking up. Similarly, silk and rayon range of denims are also in demand,” Ram explains.

Though the US and Europe have been major importers of Indian denim fabric, there has been a shift in focus with Indonesia and Philippines attracting large denim imports. “We sell 70 per cent in the domestic market and 30 per cent goes for exports. We supply to brands like Killer, Spykar, Pepe, Max Retail, Allen Solly and Madura Brands. Internationally, we have a very strong presence in the European market. We do business with Zara, Carrefour, Next, Marks & Spencer to name a few,” Ram informs.

Ram believes the ongoing global economic slowdown would not have a major impact on India since the country is blessed with a large young population. Bhaskar wants to do export only in the value added premium segment since they do not want to be a part of the rat race for basics. “We don’t want to sell a 13 ounce or 14 ounce basic indigo denim in competition with other global denim mills. I would rather sell a 120 feet container on my terms, my price and my quality standards instead of selling two million meters and breaking my head on the pricing,” opines Ram. In fact, Bhaskar is very strong in lightweights and power stretches. About 60 to 70 per cent of their production is diverted to the stretch part. The company makes denim fabric from three ounce to 15 ounces. With a strong spinning background, Bhaskar caters to the semi premium and premium segments. “It’s all about product innovation and exciting blends. People want an alternative as good as cotton,” he concludes.