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22 January 2014

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No Error No Error Jeans looking to Jeans looking to double production double production and expand and expand product rangeproduct range

No Error Jeans looking to double production and expand product range

Denim makers Denim makers face heat over face heat over Bangladesh strife Bangladesh strife

Denim makers face heat over Bangladesh strife

Home Try-On Home Try-On Service launched Service launched by Bluer Denimby Bluer Denim

Home Try-On Service launched by Bluer Denim

From The Denim Directory

Dystar India Pvt. Ltd.

Events

Show Report

Bread & Butter Winter 2014

Featured dresses up for dresses up for dresses up for KEWAL KIRAN KEWAL KIRAN KEWAL KIRAN

RAPID GROWTHRAPID GROWTHRAPID GROWTH

following three principles: stability, sustainability and scalability. These principles form the backbone of our company's strategy and we feel we will be able to develop customer preferences for our brands in the coming years."

The financial performance of the company in recent years, seems to endorse that these principles have paid off. Despite net excise duty hike of 3.5% on branded apparels, the company's net sales have grown at a compounded annual growth rate (CAGR) of close 13% to 300 crore in FY13, at the same time its net profits have grown at a CAGR of 7.3% to 53.4 crore.

The company's financial performance after the removal of excise duty on branded apparels last February has seen a marked improvement. For the first half of the current fiscal, the company's net sales jumped 27% to 115 crore, while its net

KEWAL KIRAN dresses up for

RAPID GROWTHKewal Kiran Clothing, having a tight financial management and strong distribution network, has been recording consistent average return on capital employed (RoCE) of 30% in the last three years, while most indigenous garment retail companies have been struggling to make a mark for themselves

The company, known mainly for its denim jeans brands - Killer and Lawman, has achieved the growth with a debt-to-equity ratio of mere 0.05 and average operating profit margin close to 30%.

"We are in the garmenting business not to sell it to a foreign company or a private equity player merely for valuations," says Kewalchand P Jain, chairman and managing director, Kewal Kiran Clothing. "We believe in

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profit increased by 33% to 23.5 crore on a year-on-year comparison.

The genesis of this growth can be attributed to the company's strong distribution network and conservative approach to the business. The company has four apparel brands: Killer, Lawman, Integriti, and Easies. Killer and Lawman are primarily denim jeans brands, while Intergriti and Easies are casual wear brands.

The company derives 61% of its net sales from the denim jeans brands at present. In casual wear, its shirts brand is doing well.According to a study by Technopak Advisors, the denim market in India is expected to grow to 13,000 crore in 2017 from 6,700 crore in 2012.The study says the mid-premium segment (denim jeans costing 1,500 to 3,000), which commands a 15% market share in the denim market now, will grow to 19% by 2017.

Thanks to the increasing acceptance of denim jeans and improved purchasing power in tier-II and tier-III cities, companies like Kewal Kiran, which have high penetration in these cities would benefit amply.

The company has a large network of 97 distributors and retails through 313 stores, of which the company owns 14; and the remaining 299 are franchisees.

Says analyst Tejash Shah of Spark Capital, w h o h a s h a d a l o n g - t e r m b u y recommendation on Kewal Kiran Clothing: "The focus of Kewal Kiran has been clear from the beginning: to diversify risks in all layers of the business. In metros, due to consolidation of business in malls, the retail space owners would negotiate pricing with

brand owners providing little market share for brand owners.

Kewal Kiran is focussed on its terms of trade, which meant that it concentrated on tier-II and tier-III cities. This strategy has paid off." He adds, "The company has done calibrated expansion with franchise-owned and franchise-operated model. The company believes retail expansion as a brand-building vehicle rather than just a growth driver."

The benefits of this strategy can be seen in its average realisation (wholesale), which grew by 10.3% to 873 in the September 2013 quarter on a year-on-year basis.

The company plans to focus more on advertising of its flagship brand Killer in upcoming cities in the coming quarters.

http://www.kewalkiran.com/

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Expanding Production And Product RangeNo Error Jeans, launched in 2007, is known for its pricing, fits and innovation and works towards providing the best of wearable fashion to women.“We are launching tops in Autumn/Winter 2014 in 50-60 designs. We are also planning dresses and evening gowns for the next season. These will be in chiffons, jacquards, velvet and imported fabrics.” Varwani says, elaborating on the company’s product expansion plans.

The company has expanded its range from fashion denim to cotton trousers. The portfolio consists of jeggings, printed pants, hot shorts, skirts, capris, ankle length pants, casual shirts and tunics. The company started casual shirts in

No Error Jeans from Ramesh Traders is looking at building its production capacity as well as distribution network in untapped states, while having aggressive plans for expanding product basket. The brand is eyeing a growth rate of 25-30 percent in the coming seasons.

Naresh N Varwani, Director, Ramesh Traders expresses, “We did good business in the last season and were able to register good growth in fashion denim, coloured pants, cotton pants, printed pants and printed jeggings. We have got a good response for our pure casual chiffon shirts. We have managed to witness at least 50 percent growth.”

no error jeans

and expand product rangelooking to double production

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this season with 100 designs which have got a good response. The range includes checks, stripes, in chiffon and georgette based casual shirts. They have introduced parallel pants in linen and prints with about 20-25 designs in parallel pants. Also offering camouflage pants which have a good response in the market. The colour palettes are black, navy and royal blue, red, green, white, yellow, purple, wine, lavender and baby pink, which are fast moving colours in summers.”

The current production capacity of the company is 24,000 pieces a month, however, it is planning to build a new unit in Bhiwandi, to be operational in a year and helping the company almost double its capacity.

Establishing Distribution NetworkThe product are retailed through 1,200 MBOs. Having presence in seventeen states with stronger markets being Punjab, Haryana and New Delhi. The company is also targeting Andhra Pradesh, Kerala and Bihar, which will be catered to from this season. The company wants to double the production capacity and then look at opening exclusive brand outlets. They also want to enter three remaining southern states by the next season.

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Apparel - Retail

http://www.bluerdenim.com/

Home Try-On Service launched BLUER DENIM

Bluer Denim has announced the official launch of its free Home Try-On service – a first of its kind initiative in the denim industry, simultaneous to its six-month anniversary celebration of its successful Kickstarter campaign.

Home Try-On will enable Bluer customers to choose up to three pairs of jeans in any wash, size, or style, and delivered to their home to try for free. Customers have seven days from product receipt to make a purchase decision, and need to pay only for the product they choose to keep. After the customer decides which product to keep and which to return, they can send the unwanted product back to Bluer in the prepaid shipping box. No money is charged to the customer's card unless a purchase is made or if the customer fails to return the product following a 21-day grace

period. Shipping costs, both to the customer and back to Bluer, are completely free.

Bluer Home Try-On is available for all women's and men's denim jeans and jackets. The company believes that many men are averse to shopping for jeans. Men often say they are uncomfortable trying on jeans in a store environment, or trying to make a decision without their significant other. Women surveyed by the company's research indicate that they would love the benefit of trying on the jeans in the comfort of their home, with their own shoes, tops and accessories to ensure the jeans fit perfectly and compliment their existing wardrobe. Bluer's Home Try-One experience aims to eliminate the hassle and risk of buying jeans, and changes the process of jean shopping from an often-stressful endeavor to a stress-free and potentially entertaining experience.

"Home Try-On, or HTO as we call it, is a revolutionary step forward for the denim consumer; many shoppers are put off by a crowded store environment and the stress and pressure to make an immediate decision. Shoppers like to have a trusted second opinion from a friend, husband, wife or partner who will validate their choice- now with Bluer's HTO service, shoppers can and will take their time, feel 100% confident that they have made the right decision with their purchase and only be charged for the products they choose to keep". Jeffrey Todd Shafer, Bluer Denim's Founder.

by

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Industry

It's a double whammy for the denim fabric manufacturers in India. They are facing a payment crisis in the domestic market, at the same time political tension in Bangladesh has affected exports of denim fabric to the nation. India currently has a capacity to produce 1 billion metres of denim fabric per annum.

Sharad Jaipuria, president of Denim Manufacturers Association, talking to ET said: "Nearly 75% of the denim fabrics produced in India is used domestically while the res t is expor ted. The den im manufacturers have landed in a problem as payments have slowed down due to economic downturn. Moreover, denim manufacturers have scaled up the installed capacity to 1 billion metres whereas the utilised capacity is 700 million metres, which has created a glut in the market."

Due to the ongoing political tension in Bangladesh foreign buyers who used to pick denim from Bangladesh are now staying away from the neighbouring country, affecting exports to the country.

A lmost 50% of the den im fabr ic manufacturing units are located in Gujarat, another 30% are located in Punjab and Ra jas than and the rema in ing i n Maharashtra. The denim industry has been witnessing a growth of 10% to 12% in the last decade.

The units at lower end of the market have been affected the most. Denim fabric are of three types - low end ( Rs 115 per metre), mid quality ( Rs 130 - Rs 150 per metre) and high end ( Rs 160 - Rs 250 per metre). "The maximum problem is in the low-end market," said Rajiv Dayal, MD & CEO of Mafatlal Industries. The low quality denim fabric constitutes 60% to 70% of the market.

Dayal said since Mafatlal Industries is into the value-added and fashion-oriented denims, it has not faced much of a problem. "It is true that tension in Bangladesh has created some problem but now the fabric is being diverted to Cambodia, Vietnam, Honduras, and Sri Lanka where the garments are being made for the export markets. We are following that trend. But for the manufacturers who are at the lower end, there is a problem," he added. The company manufactures 25 million metres of denim and the capacity is being scaled to 30 m metres.

Like Mafatlal, Raymond UCO Denim is also not feeling the heat of this market scenario. "We are into value-added products and there is no glut in this category. However, the present scenario in the denim market is temporary and will take a year or two to come to normalcy," said SK Gupta, group CEO, Raymond UCO Denim.

But YC Gupta, CEO of LNJ Denim, said that now the low- range and mid- range fabr ic manufacturers are upgrading to the high-grade quality. "This will create a lot of problem as more surplus stock will be created in the market. Right now, low-grade manufacturers are exporting denim at a throwaway prices to the Latin American nations," he added.

Bangladesh Strife

Indian Denim Makers Face Heat Over

Source : Economictimes.indiatimes.com

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Events

Bread & Butter is the leading trade show for contemporary fashion and people who want to communicate, want to see brands, retailers and are looking for trends, and who want to do business at an international level still feel at home at the trade show at Tempelhof Airport, Berlin.

The 2014 show which concluded on 16 January, 2014 had good quality of visitors, conversations on a high level and people who are really interested.

BBB-chief Karl-Heinz Müller’s has new plans for the upcoming 31st trade show and will be adding two more days to the shows, for consumers. He expressed “The traditional trade show concept doesn’t work anymore in future,” The connecting of brands, retailers and media on a local area in trade show halls, that’s still the base of business but it can’t be the only concept in the future anymore. “We have to include Social Media, Online and the interested consumer. And we have to think about integrating lifestyle brands besides the well known clothing sector,“ he added.

Down jackets and vests were a part of most of the F/W 14/15 collections, additionally warm bomber and college jackets and a lot of knitwear were also on show. Camouflage continues to rule for next winter in the men’s segment, whether it is on jackets, shirts or pants. In the women’s segment the biker chic and rock look stays in the focus with leather jackets, leather pants or denims with leather applications.

Overall prints and patterns we less and the

Bread & Butter Winter 2014Show Report :

monochrome looks in typical winter colours like blue, green, brown, black and grey were predominant. Some colour highlights came in yellow and red. The Monochromatic colors were state of the art, however, some brands showed eccentric and imaginative patterns like realistic knitted prints on shirts and sweaters.

For denim, slim silhouettes dominated for men and women.Extremely washed out and acid effects have declined. Most of the denim brands like K.O.I, Mustang, Freeman T. Porter, Fornarina and Dr Denim showed clean and simple denim washings without a lot of experiments with prints or patterns. Destroyed optics and patches were visible, but much less than in summer. Indigo blue dominated as the denim colour. Other colour highlights were green and berry red denims. A key piece for the next season is denim sweatpants.

Levi’s at B&B

The Flat Head at B&B

Visitor at B&B

Source : sportwearnet.comImages : breadandbutter.com

Dystar India Pvt. Ltd., India

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From The Denim Directory

reduced Indigo liquid with over 10 years production experience and customers in all parts of the world. It allows a cleaner denim production and a reduction of the Sodium Hydrosulfite usage by 60%-70%.

The development of electrochemical dyeing technology for DyStar Indigo Solution, is the current innovation to meet the increasing need for a cleaner and greener textile manufacturing process. Eliminating the usage of Sodium Hydrosulfite completely from the process and reduces waste water. Additionally Dystar has a full range of chemicals available for finishing.

The company also offers Dystar Textile Services (DTS), dedicated to supporting brands, retailers and their industry partners with fast and innovative global solutions in identifying common failures.

DyStar has a unique approach to the textile supply chain and works not only with brands and retailers at the design and specification stages of product development but also with the mills who process the fabrics that are required to meet the shade, fastness and ecological requirements of any given product line.

Company:

Segment: Dyes & Chemicals

DyStar is a leading provider of products and services for the global textile industry having a heritage of over 100 years of both product and application innovation. DyStar is a leading supplier of textile dyes with a broad product range, covering almost all fibers and quality specifications.

Headquartered in Singapore, Dystar has office across the globe. DyStar India Pvt. Ltd. is the Indian arm of DyStar Group and offers the global standard products & services to customers in India.

Dystar has been producing Indigo since 1897 and has written the history of synthetic Indigo and is leading solution provider for the Denim Industry. Their commitment and focus in areas such as product quality, innovation, our customers, the environment, has made the company an important partner in the denim supply chain.

Dystar's offering for the denim industry include: Patented DyStar Indigo Vat 40% Solution Cassulfon D for fashionable denim effects Sera® process auxiliaries to complement

Controlled Coloration Lava® auxiliaries for washing, dyeing,

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The patented DyStar Indigo Vat 40% Solution is the core product for the denim Industry. Representing the state-of-the-art in pre-

Mr. Manish BasleSr. Manager - B.D.basle.manish@dystar.com+91 22 6141 9021www.dystar.com

Lava® U Garment Denim Wash Training

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