India&rsquo◇◁◇;s denim industry today finds itself in odds due to exorbitant cotton prices△★=-, but strong demand is quite supportive for future growth○…▲▷★, and leading companies are planning to increase their production capacity to meet the demand▷☆◆▪. However▼▽-•, the industry is facing stiff competition particularly from China which has advantage of cheaper cotton□▽▽=.

Price increase in cotton is impacting the entire textile industry including denim segment▽▪▽★. However▼△▼◁, demand from end users is better along with increasing cost of raw material……, Bhuvan S Bundela▷•, head (Product Development) of Oswal Denim told Fibre2Fashion during the Gartex Texprocess trade fair held recently in Mumbai•▪★▼. He said that demand remains strong when raw material prices increase■▼. He added that the government has to strike a balance between the cotton growers and the textile industry○…☆. He expects cotton prices to remain on the higher side as the government may increase Minimum Support Price (MSP) for kapas (unginned cotton) but adds that the time is good for denim industry which can grow at annual growth of 10-20 per cent in next couple of years★▷. He pointed out that the pandemic has changed the market a lot where exclusive retail stores and showrooms are struggling for survival-▷▷, but big retails chains△★◇•, malls and e-commerce platforms are flourishing-…▼◇◇. Therefore-◁△▷=, marketing channels are changed drastically▲☆=●=.

Gurudas Aras◇★▼☆, strategic advisor and independent director at A◇●●-.T▼□■.E•▽-…○. Group●▪, said that after the pandemic=◇, Indian exporters have bagged good orders from foreign buyers★=▪▷•, but costlier cotton has put them into trouble★▲…. Today•□●▪▪, exporters are reluctant to accept orders due to uncertainty about the prices of raw materials-=◇◇. The government should intervene to stabilise cotton prices★◇•◆. Traders▷▲◁, middlemen and MNCs have built up large stock of cotton▼●□•□. Normally the government has little role in free market economy☆■▲, but if it can take some steps for the stability of the value chain•★–○, it will be welcome steps○▲…◁□.

Indias denim industry today finds itself in odds due to exorbitant cotton prices★●•, but strong demand is quite supportive for future growth◆●…, and leading companies are planning to increase their production capacity to meet the demand☆…▲◇. However•▷◇, the industry is facing stiff competition particularly from China which has advantage of cheaper cotton●•▽=.Speaking about sustainability◇▪, Aras said the use of natural indigo dyes is the need of time and the industry is aware of its responsibility towards the environment and the earth△△★▼, but higher cost discourages few people•◆•○•. He expects impressive growth of 5-10 per cent for denim segment in next couple of years◁▲. According to him◁▽•◇◁, huge youth population▪=◆☆◆, and popularity of new wears of denim are supporting factors☆-●◁▪. He said that Indian denim exporters are getting stiff competition from neighbouring countries▼▽◁, particularly from Bangladesh which is performing well in terms of quality○◆…, cost and timely shipment of orders◆▷□☆. He added that the recent trade agreements will help industry for greater access in global market◁•◆-★, particularly Europe Union★▲★-•. Schemes like PLI○…▷△, MITRA and others will benefit the industry to increase its capacity and sharpen competitiveness in the global market•★▽.

Gunjan Mittal▽…, director of Mahak Synthetic Mills Pvt Ltd▷▼-•, said that exorbitant price increase in cotton has dampened demand in the entire value chain★★□▽. Jeans prices have gone up to around double in last one year▽-, which has squeezed margins●▷▪…◆. However□★, denim market is expected to grow at 5-10 per cent as jeans is attracting more and more people irrespective of age and gender•◇★. Our company is planning to add capacity by 10-15 per cent annually to our current production capacity of one crore metre per day-◁.

Rahul Shah=•◇▲, group managing director of Kanchan Group◇▲, said that the cost of raw materials increased due to costlier cotton•□☆…, but the industry is unable to pass on higher input cost•○▪◇. He said that denim industry is facing stiff competition from China as Indian cotton is very costly compared to the Chinese fibre◇•. However●▽…○, the industry is doing well in domestic market▲•■△=. He said that the government delayed the removal of import duty on cotton◇▪◇, but now it should remove import duty of 10 per cent on cotton yarn▼•▽. Shah said that the government should remove import duty on indigo too☆☆◁-•. The industry needs to focus on eco-friendly process of dyeing for sustainability…▽-★○. We should reuse water and renewable power•◁=□. He said that Kanchan Group is setting up new plants in Ahmedabad as domestic demand for jeans is quite strong◇△○●◇. He expected that the denim industry will grow at a very fast pace in next decade as the government&rsquo▼◁▪★;s schemes will yield result in couple of years•◁.

Shanmuha Raja△…◁, general manager (Product Development) of Vishal Fabric Ltd…▪★, said that denim industry is facing uncertainty regarding cotton prices□▽, so the government should take steps to stabilise the prices•☆▽…. On market front▪△=, he said that demand is quite good in denim industry◇•=. He added that the customers&rsquo○◆△-; taste is changing so the industry needs to keep itself relevant by making required changes in products•▷▼◇-. He said that his company will expand production capacity from 85 lakh metre to one crore metre to meet increasing demand•-.

Aamir Akhtar●-, chief executive officer of Arvind Ltd▲◁◆■■, said We need to find solution to costlier cotton through innovative approach▼◁•=. Denim industry should think to use other fibre to substitute the natural fibre…▲. Government should ban cotton export to stabilise cotton prices◇…▼. He said that Indian industry produces around 1…△.6 billion metre denim fabric annually△=▪▷, of which☆▽◇●▲, less than one billion metre fabrics is consumed locally△□, while the rest production is exported…▪▷. Arvind Ltd is planning to expand production capacity to meet increasing demand=◁▲▲◁. The company has 80 per cent sales in domestic market and the rest is sold in global market◇…○◇.

Nishant Giri▼-, senior general manager of Jindal Worldwide Ltd=▪, told that demand for denim products jumped up after the pandemic but uncertainty about cotton prices is hampering industry&rsquo▽◁•★;s growth◆•▼▼◆. He too was of the opinion that the government should ban cotton export◆▲•☆. On demand side▽●-○▲, he said that domestic demand is likely to remain strong as festival season will begin after current marriage season●◇○. He said that denim demand is increasing because of higher popularity even among older population▲…◆•. Customers are keen to purchase denim upper wear also in tier-1 and tier-2 cities…●. But tier-3 cities will be the driver for further growth▪△◇▼☆. He said that his company&rsquo□▲•;s domestic to export sales ratio is 70□★-:30…△●.

Speaking to Fibre2Fashion▷◇☆=, Subir Mukherjee▼△◆, business head of Bhaskar Industries…•○•, focused on fast transportation facilities in the country which is more needed than any subsidy☆▼…★. For example▪…◇▷▷, if Indian exporters ship consignment to Bangladesh□•▪, it takes around one month for transportation through land route△□•. Slow transportation adds cost and worries for the supplier▪○■▷. He said that the government should not give any subsidy●◆◆▽, but it should develop dedicated corridor to ensure transportation of a consignment within 5 days=-△▽▷. He said that higher cotton prices are impacting the entire value chain as the industry is facing not only lower supply but also poor quality of cotton☆△▲☆. On eco-friendly dyeing process△▷, he said that the industry can contribute by manufacturing jeans and other products which can be used longer●▲•. If such products are made available at reasonable prices▲☆•▲◆, people will buy lesser products★△-. It means the industry will leave less footprint on our environment…▲.

Pankaj Singh●-, vice president (Marketing) of Ginni International◇▲★, told that the industry must find out solution to the problem of higher cotton prices◇◁…. Innovative approach can open the door for man-made yarn☆▪◆. The industry should focus on polyester-cotton yarn for denim segment☆▽◁. Singh said that the production cost increased by around 25 per cent which is hampering growth■▼▷▲. However☆▷▲, we can expect 10 per cent annual growth in demand in next two years…◁. Ginni International is planning to increase production capacity-□. When asked about any demand from government☆◇◇…◇, he said that GST on textile products should be reduced◆•.

Aditya Goyal☆-▼△, managing director of Anubhav Industries▲★•▽, said that the government should develop better transportation infrastructure▷●=-◇. He said that the industry needs to find out a solution to the current high cotton prices▲▷▲▪, and the use of recycled fibre can be thought of■◇. According to him□■△-□, the industry will not get any respite from ban on cotton export (if it is announced) as outbound shipment has already slowed down▪•▷•▪. But banning cotton export till December this year may turn out to be beneficial–☆▪. Goyal said that denim market is changing at a very fast pace because of changing in fashion and customers&rsquo■▪•○; choice■◇●◆•. The industry is receiving good demand•▽=, particularly in domestic market…◇☆★.

PK Sharma☆…△•▪, business head at Nandan Denim•○●, said that cotton prices are proportionately higher■▪◁, so the industry is suffering a lot◆▲◁★. The government should incentivise garment export and raw materials import◆☆▷. He said that denim industry is likely to grow at the rate of 10 per cent annually☆•. Nandan Denim is also planning to expand production capacity△-◇. About sustainability•△=, he said that although synthetic dyes are more popular compared to natural dyes★▽▼, the industry should be careful about effluent and follow norms of pollution control to protect the environment•△■★….