Jindal World to ramp up denim unit

Jindal Worldwide Ltd is going to commence production at its denim fabric and garment manufacturing unit at the city outskirts. The group is investing around Rs 95 crore, which include Rs 25 crore on denim, Rs 30 crore on spinning and Rs 40 crore for manufacturing wider-width bedsheets.

The Gujarat-based Jindal group, which also launched jindalonline a couple of years back, has just launched its denim manufacturing facility with a capacity of 10 million metre per month and plans to double capacity by June.

"We will also construct showrooms initially in Ahmedabad and its satellite area," informed Yamunadutt Agrawal, chairman of Jindal Worldwide.

"We have in-house designers for our new denim brand which will hit the market very soon. The new brand will include everything from trousers to jacket and shirts," he said.

This brand is designed targetting mid-segment with prices starting at Rs 300 onwards, Agrawal informed. He refused to disclose the brandname under which clothes will be sold.

He said that Ahmedabad was producing around 450 million metre per year of denim till last year, and by 2006 end, it will be increased to around 600 million metre per annum. "In last one year, three big companies including Jindal have expanded denim production capacity," said Agrawal.

According to Agrawal, prices in the domestic market will stabilise after the company enters the market with its new brand.

"Now people will run after a brand providing better quality. As a new trend, denim is used as formal as well as casual wear," said Agrawal, adding that competition among denim manufacturers will result into better quality with stable prices.

About exports, he said currently they will be manufacturing for domestic market only. But exports to Europe and the US remains on cards. "At present, India is facing a tough competition from China and Pakistan in the international denim market," said Agrawal.

Jindal Worldwide is known for producing home textile material. "We were first in Ahmedabad to start manufacturing and processing of wider-width bedsheets," claimed Agrawal.

He also said that very soon people will start using denim for curtains, pillow covers, bedsheets and other home textile materials.

Later the company will expand and invest in another unit for manufacturing suitings.