What once used to be a fragmented industry is gradually gathering itself up, amidst fluctuating cotton prices, among other reasons. The denim industry in India is witnessing key players coming together to form an informal forum to take collective decisions on denim fabric and apparel prices and fight against rising costs.
"We have been meeting at an informal level since sometime. Such meetings not only help us to discuss and decide pricing related issues but also understand latest developments and technologies happening around us," said Ashish Shah, managing director of Aarvee Denims and Exports Ltd.
However, the forum is at a nascent stage with bigger players like Arvind Ltd. and Mafatlal Denim yet to be part of it.
According to Shah, the move is driven by the fluctuating cotton and other raw material prices in the recent past. Industry players are able to take collective decisions based on deliberations during the meetings, Shah added, refusing to divulge details of member denim makers.
As per PR Roy, management consultant (textiles) and director, fibre2fashion, the forum is still at a nascent and informal stage with denim makers meeting occasionally. "So far decisions related to pricing and other issues were taken individually by denim players. They are now looking at such decisions cohesively and not abruptly. The frequent meeting is also helping the denim makers to plan and prepare ahead, be it in terms of market potential or market crisis," added Roy.
The coming together of denim makers comes at a time when the industry is also adding 100 million metres per annum to its current denim manufacturing capacity of 650-700 million metres per annum. Of these, about 350-400 million metres per annum of denim is meant for the domestic market which is growing at over 15 per cent, say players.
