Apparel Online India 1-15 July' 17 | Page 30

TEX-FILE
MANAGING OVERCAPACITY

Indian denim mills exploring ‘ difficult ’ Vietnam market …

The denim industry has of late been exploring viable solutions to manage overcapacity issues that have cropped up in the last few years . Among the most popular options is the exploration of new overseas markets , strongly growing in jeans manufacturing . And , after Bangladesh , the next big target market is Vietnam that has some good jeans manufacturing units but lacks completely on strong fabric base which is in fact an advantage for Indian or other countries ’ denim mills . During a visit to Vietnam , Team Apparel Online caught up with some high officials of Indian denim mills to understand the challenges that they are facing .

No doubt , Vietnam is a difficult market and its proximity with China increases the difficulties for Indian mills . Despite this , Indian companies are enthusiastic and they believe that this market will take some more years to develop , post which it will generate good orders for them . Changing international scenario
does have mix impact on the hopes of Indian companies as they are little disappointed with the ‘ cancellation ’ of TPP but are positive after the FTA with EU came through . Even upcoming mills which are comparatively new in this industry are equally enthusiastic about this market .
Raymond UCO Denim , one of the most respected names in the Indian textile industry and in the global denim space , is also developing in the Vietnam market for the last 5-6 years . “ Vietnam is an upcoming and emerging market for denim . If you look at manufacturing countries after China , especially in the apparel context , Vietnam is very big , in fact neck to neck with Bangladesh and so it naturally attracts international brands and manufacturers . But if you look at just the denim side for sourcing , it is still relatively small compared to Bangladesh . But because of its potential , our team comes here regularly . Currently , our strategy is to build our presence and visibility
Some important players of Vietnam denim industry
1 . Saitex
2 . Phong Phu Corporation
3 . Protrade Garment Co . Ltd .
4 . De . M . Co . Vina ( Royal Spirit Group )
5 . Le & Le Garment and Washing
6 . Creative Resources International
in this market and to be fully aware about what is going on . We are in discussion with our existing clients as well as other potential customers and they are liking our products . We will continue to stay very focused on this market ,” shared Arvind Mathur CEO , Raymond UCO Denim . With an annual global capacity of 47 to 50 million metres of denim fabric and catering to premium and premium plus segments , the company is creating perfect balance between domestic and overseas markets with almost equal share in both .
Some denim companies sought to enter Vietnam through the exhibition route and the recently organized denimsandjeans . com show in HCM City ( Vietnam ) that witnessed participation of nearly 30 denim mills from across the world , and also saw 5 such mills from India showcasing their collections – Anubha Industries , Ginni International , KG Denim , Malwa Industries and Ultra Denim . Suratbased Anubha Industries , which has been in the textile industry for the
“ TO TACKLE TRANSIT TIME ISSUE , ONE HAS TO SPEED UP PRODUCTION TIME . OUR ENTRY INTO VIETNAM IS AT THE NASCENT STAGE AND WE ARE HOPEFUL TOO AS VIETNAM IS THE BIGGEST JEANS MANUFACTURER AFTER BANGLADESH .”– YOGESH BHATT , VP , MARKETING , GINNI INTERNATIONAL LTD ., DELHI
Team Ultra Denim ( R-L ) Ankush Kapoor , Kunal Kapoor , Bharat Patel , Arvind Pandey , Manish Khanna and Bhavesh Patel Ravish Malhotra , GM – Marketing ( L ) with Mohit Somra , Malwa Industries , Ludhiana
30 Apparel Online India | JULY 1-15 , 2017 | www . apparelresources . com