Apparel April 2019 Apparel April 2019 issue | Page 30

MARKET WATCH
Grasim Acquires Soktas
CMAI Western Region
Organises ‘Chai Pe
Charcha’
The Western Regional Committee of
The Clothing Manufacturers Association
of India (CMAI) arranged a Meeting of the
Members of the Western Region on Friday,
February 8, 2019 at Hotel Basera, Pune on ‘Chai
Pe Charcha’, to have an Interactive Discussion
on the Proposed Working of the Western
Regional Committee for the next Two Years.
At the outset, the newly Elected Incoming
Chairman, Mr Rajiv Agarwal, felicitated the
outgoing Chairman Mr Jayanti Veera and
expressed gratitude on his Contributions to the
Regional Committee whilst he was the Chairman.
Some of the Suggestions received during
the Meeting were to Increase the Membership,
bring all the Manufacturers of Readymade
Garments under One Place and interact once a
month so as to understand the difficulties being
faced by them and find solutions. Members
also suggested that a Directory of all Garment
Manufacturers in the Western Region be
made and Circulated amongst them, and to
Develop a Website and WhatsApp Group, and
Share the Ideas amongst the Group Members.
Another important Point discussed was that the
Manufacturers from Pune should Participate in
the National Garment Fair (NGF) organised by
the Association in Mumbai and also request the
Fair Sub-Committee for a Pavilion exclusively
for Pune.
24
I APPAREL I
April 2019
Grasim is buying Soktas India. This is currently
a wholly-owned subsidiary of Soktas, based in
Turkey, a producer and marketer of fabrics. At
present, Soktas is in the business of manufacturing
and distribution of premium cotton fabrics with its
manufacturing facility in Maharashtra. The company
posted a revenue and EBITDA of R186 crore and
R31 crore, respectively, for the fiscal ended March
2018. It sells premium fabrics in India under the
brands Soktas, Giza House and Excellence by
Soktas. The company is also a supplier to leading
Indian and global menswear brands.
The acquisition is in line with Grasim’s business
strategy to strengthen its presence in the premium
fabric market. Grasim’s aim is to strengthen its
leadership in the premium cotton and linen fabric
market in India. Increasing disposable income,
fashion and quality orientation of Indian consumers
has resulted in an increase in the demand for
premium fabrics over the years. The company is
known for its fabric brand Liva introduced in 2015.
Grasim, a part of Aditya Birla, is the world’s
fourth largest pulp producer and one of India’s
largest viscose staple fibre (VSF) producers. In
India, the demand growth for VSF at eight per cent
is higher than the global demand growth.
Under Armour Enters Indian Retail
Under Armour is set to open retail stores in India. The
US-based sportswear brand will start operations by opening
stores in metros and selling its global portfolio of training and
running products.
The company, which had partnered with Amazon and Flipkart-
owned Myntra to sell some of its products in India, has set up
a wholly-owned subsidiary in the country. Under Armour, which
uses brand endorsers, including WWE star-turned Hollywood
celebrity Dwayne The Rock Johnson, Olympic swimmer Michael
Phelps and heavyweight boxing champion Anthony Joshua, has
been testing cricket-related products in Jalandhar. It has also
reached out to Indian cricketers.The company has been investing
in Asia Pacific as there are long-term growth opportunities. It has
been concentrating in China over the last few years and over
the next couple of weeks will be establishing its retail presence
in India.
Under Armour has been working on improving operations,
including supply chain initiatives that are expected to help boost
2019’s gross margins. Most global sportswear companies,
however, have found it difficult to crack the price-sensitive Indian
market. The sector recently witnessed heavy restructuring, too,
with several top companies laying off their employees and taking
major functions out of India to cut costs.