17 Jan '25
(Fibre2Fashion News Desk (DR): Denim has undergone a remarkable transformation—from a sturdy workwear to becoming one of the most popular and iconic textiles in the global fashion industry. From its humble beginnings to its cultural significance today, denim has woven its way into the fabric of societies worldwide and this journey is a testimony to its enduring appeal!
It was in the late 1970s that denim made a significant leap in fashion, shifting from utilitarian wear to becoming a staple in casualwear. However, it was only in the mid-80s that denim production technology was introduced in India, setting the stage for the growth of a booming industry. The rest is history.
Insights
India's denim industry is growing, driven by rising income, fashion trends, and sustainability.
With Gujarat leading production, the market is set to reach $9.15 billion by 2026.
Challenges like high raw material costs persist, but innovation, technology, and exports offer opportunities.
Industry leaders stress sustainability, R&D, and strategic actions to strengthen India's global denim presence.
Over the years Indian denim industry has evolved into one of the most dynamic hubs for denim manufacturing globally. India’s contribution to this global trend is particularly notable, with Gujarat, often referred to as the ‘Denim Capital of India’, playing a pivotal role. The state produces an impressive 60-70 per cent of the country’s denim fabric and ranks third in denim production worldwide.
The Indian denim market has experienced tremendous growth in recent years, with an annual growth rate of 8 to 9 per cent. Multiple market studies and projections suggest the market is set to touch $9.15 billion by 2026, a rise of $3 billion from $6.15 billion recorded in FY2023. This steady growth is driven by several factors, making the market both challenging and full of opportunities.
“Geopolitically, we are in uncertain times, which impacts the market. The market is fluctuating constantly, and buyers now expect shorter lead times to minimise inventory, a trend that has both positive and negative aspects,” Vedant Agarwal, the Chief Executive Officer at Suryalakshmi Cotton Mills Ltd, told Fibre2Fahion.
For manufacturers, shorter runs mean less efficiency, but it also helps in reducing inventory levels, feels Agarwal.
Suryalakshmi Cotton Mills Limited is one of India’s leading integrated premium yarns to denim manufacturing entities, and over the past twenty years or so, the company has evolved into a premier Original Denim Manufacturer (ODM), serving leading global and domestic brands, and holding a dominant market share in the premium denim segment.
“The Indian denim market has shown some stability of late, but with the significant increase in manufacturing capacity, we believe the market should ideally grow at around 5 per cent annually. While this growth aligns with the rising per capita consumption of denim, it may soon outpace domestic demand, making it crucial to boost exports,” said Gautam Ganeriwal, Executive Director at Sitaram Spinners Pvt. Ltd. in an earlier interaction with Fibre2Fashion.
He identified high cost of raw materials a major obstacle hindering the growth trajectory. “One of the key challenges we face is the high cost of raw materials, which constitute about 80 per cent of yarn production cost.
Compared to other countries, India’s raw material prices are significantly higher, spandex is around 30 per cent more expensive, polyester is 25 per cent higher, and cotton cost is more than 10 per cent. These elevated costs push product prices up and make it difficult for Indian manufacturers to compete globally,” Ganeriwal said while explaining the existing dynamics of the denim industry.
Full Report: https://www.fibre2fashion.com/news/fabrics-news/indian-denim-industry-poised-for-growth-amid-challenges-innovation- (Source: Fibre2Fashion.com)