Stitching it Right
Indian textile and apparel companies benefit as global brands look beyond China for sourcing. The sector also shows the highest growth in market cap in the BT500.
![Dilip Gaur, Managing Director, Grasim Industries [Photo: Rachit Goswami]](https://akm-img-a-in.tosshub.com/businesstoday/images/story/201610/guar660_103116043530.jpg?size=948:533 "Dilip Gaur, Managing Director, Grasim Industries [Photo: Rachit Goswami]")
- Oct 29, 2016,
- Updated Nov 2, 2016 12:03 PM IST
As you drive along the 25-km Western Express Highway in Mumbai, every second hoarding is that of actor Kangana Ranaut promoting brand Liva - Aditya Birla-owned, Grasim Industries' brand of fabric that promises comfort with excellent fluidity and flow. This is the first time that a fibre manufacturer has invested in branding raw material - the Viscose Staple Fabric, a natural fibre that Grasim has been manufacturing since Independence. Besides, it has partnered with 22 apparel brands to create fashion using Liva fabric.
According to Vasanth Kumar, Executive Director, Lifestyle International, Max Retail Division, Indian textile and apparel companies will see the next level of growth from the domestic market. This is primarily due to more and more Indians wanting to wear branded apparels. In fact, consumption of branded apparels has grown by 25 per cent in the past one year, at a time when market sentiments were subdued. "The branded denominator has gone up and it will definitely reflect on the market cap," says Kumar. Govind Sharda, President, Nandan Denim, which manufactures fabrics for most leading denim brands, echoes Kumar's views. By the year-end, the company is expected to manufacture 110 million metres of denim fabric every day, compared to 99 million metres last year. "The fastest-growing segment is premium denims, which is growing by over 20 per cent, and bulk of the consumption is happening in the domestic market."
Though the Indian textile and apparel companies have a bright future, industry stalwarts believe that they have to innovate and bring scale to their business. "As far as textiles is concerned, we will become strategic partners to at least 10 of the largest global brands or retailers by adding garmenting capacity," says Lalbhai, adding that the next level of robust growth will come only if the textile companies control the entire value chain. "We will give them the fibre and the garment that will be ready to go to retail stores. Brands want time to be crashed. So, if you are not controlling the value chain you will not be their preferred choice."
@AjitaShashidhar
As you drive along the 25-km Western Express Highway in Mumbai, every second hoarding is that of actor Kangana Ranaut promoting brand Liva - Aditya Birla-owned, Grasim Industries' brand of fabric that promises comfort with excellent fluidity and flow. This is the first time that a fibre manufacturer has invested in branding raw material - the Viscose Staple Fabric, a natural fibre that Grasim has been manufacturing since Independence. Besides, it has partnered with 22 apparel brands to create fashion using Liva fabric.
According to Vasanth Kumar, Executive Director, Lifestyle International, Max Retail Division, Indian textile and apparel companies will see the next level of growth from the domestic market. This is primarily due to more and more Indians wanting to wear branded apparels. In fact, consumption of branded apparels has grown by 25 per cent in the past one year, at a time when market sentiments were subdued. "The branded denominator has gone up and it will definitely reflect on the market cap," says Kumar. Govind Sharda, President, Nandan Denim, which manufactures fabrics for most leading denim brands, echoes Kumar's views. By the year-end, the company is expected to manufacture 110 million metres of denim fabric every day, compared to 99 million metres last year. "The fastest-growing segment is premium denims, which is growing by over 20 per cent, and bulk of the consumption is happening in the domestic market."
Though the Indian textile and apparel companies have a bright future, industry stalwarts believe that they have to innovate and bring scale to their business. "As far as textiles is concerned, we will become strategic partners to at least 10 of the largest global brands or retailers by adding garmenting capacity," says Lalbhai, adding that the next level of robust growth will come only if the textile companies control the entire value chain. "We will give them the fibre and the garment that will be ready to go to retail stores. Brands want time to be crashed. So, if you are not controlling the value chain you will not be their preferred choice."
@AjitaShashidhar