From a time when denim manufacturers had begun reducing their capacity given the sheer drop in domestic as well as export demands. Recessionary trends in western countries as well as appreciating rupee had been a cause of worry for denim manufacturers in India.
However, denim manufactureres now heave a sigh of relief as exports inquiries begin to pour in. According to industry players denim exports have improved by 10 to 15 per cent.
"It had been a grim situation for some time. But now gradually we are seeing an increase in export inquiries that have begun pouring in from several countries. Even our exports have risen by about 10 per cent recently," said Ashish Shah, managing director of Aarvee Denims & Exports Limited. The Ahmedabad-based denim major's exports have risen from 25 per cent last year to 35 per cent of its turnover this year. For the fiscal 2009, Aarvee pegged a turnover of around Rs 320 crore, added Shah.
Similarly, Century Textiles & Industries Ltd also resumed its denim production which had been reduced to about 50 per cent of the total capacity at its Khargone plant in Madhya Pradesh. The company had cut down denim capacity owing to adverse market scenario and demand recession.
According to Deepak Chiripal, chief executive officer of Nandan Exim Limited, the denim arm of Chiripal Group, the company has been witnessing around 10-15 per cent increase in export inquiries from regions like Latin America and Middle East.
"It's not just that the demand scenario is improving, but also the recent rupee depreciation has benefited the denim industry in terms of exports," said Chiripal.
