![]() Financial Daily from THE HINDU group of publications Wednesday, Oct 02, 2002 |
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Marketing
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Strategy Arvind Mills bid to keep denim on upward trail Neha Kaushik
NEW DELHI, Oct. 1 TO ensure that denim remains on an upward trail, Arvind Mills, the third largest producer of denim in the world, is increasing its focus on creating `innovative' products. According to Mr Rajat Passi, National Sales Manager (Denim Business Division), Arvind Mills Ltd, "We are moving from basic denim to creating totally differentiated products. The constant innovation also helps in protecting our bottomline and to guard against market fluctuations." The company is currently working on developing new varieties in denim including coatings, weaves and is looking at innovations in lycra. Even the latest collection from Arvind Mills - the Autumn-Winter seasons of 2003-04 - has a focus on differentiation. The company claims to have received a very positive response to the collection outside India, which was showcased at Tex World in Paris last month. "Around 40 per cent of the products offered by the large brands comprise `differentiated products' or higher value products. Arvind Mills is keenly pursuing this segment of the market and is creating specialty denim fabric that caters to the needs of the large brands," says Mr Passi. Arvind Mills exports to a number of leading international brands including the likes of Gap, Levi's, Lee, Wrangler, Nautica, Sears, Tommy Hilfiger, Marks and Spencer, among many others. Meanwhile, the company is identifying new clientele in a number of new markets. Currently, Arvind Mills is testing its fabric in the Japanese market. Says Mr Passi, "We are speaking to a few companies there and have sent select denim to Japan." The Japanese market for denim is said to be among the most selective and developed. About 50 per cent of the turnover for the denim division comes from exports. Meanwhile, to keep up with the constant rate of innovation in products, Arvind Mills has also made changes in its product lines. On the manufacturing front, the company has enhanced its annual mercerisation capacity, its stretch denim capacity and its ring denim capacity. The denim division of the company is expected to grow about 8-10 per cent this year. The division had recorded sales Rs 333 crore in the first quarter of this year.
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