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Newsletter

29 August 2014

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Denim Industry Who’s Who

Mr. Kamal Khushlani, Mufti, India

Mr. Mukesh Tyagi, BST Textiles Mills Pvt. Ltd., IndiaG-Star RAW

Fall 2014 Men’s Lookbook

Bootlegger Re-Launches Jeans Line with Fall Fashion Arrivals

Pg No. 3

Munich Fabric Start + Bluezone from 2 - 4 September, 2014

Over capacity continues to affect Denim Fabric Manufacturers margins

Net profit plunges for Chinese textiles producer Weiqiao

From The Denim Directory

Suryalakshmi Cotton Mills Ltd., India

Featured

Envoy Textiles to set up a spinning unit

Indian Terrain re-launching vintage denims this winter

Cotton prices slide as demand drops

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Apparel - Lookbook

August 2014 03DENIM CLUB INDIA

G-Star RAW Fall 2014 Men’s Lookbook

The G-Star RAW collection for men for Fall 2014 is simply superb. It is a collection for guys that aim to be “different”, outstanding, vanguard. Each garment has some special detail – such as a “crooked” seam, an unexpected pocket, or simply a totally unusual style.

SEASONAL HIGHLIGHTSG-Star has put a spotlight on dark denim for Fall/Winter 2014. Pieces for both Women and men are offered in deep blacks, a range of coatings and finishes from classic raw denims, to modern semi-matte versions. By varying black textures and materials, timeless style is easy to achieve.

G-Star dark denims work perfectly when skilfully layered, giving a subtle, sophisticated look. For men, the rich velvety Wearlent Bomber perfectly complements matte dark denims.

G-Star RAW Fall/Winter 2014 collectin also includes a range of high-performance jackets. From trench coats to parkas and bombers, General Jackets takes inspiration from the classics and reworks them in innovative fabrics with modernized detailing.

RAW ESSENTIALS? : The RAW Essentials collection is a premium seasonal range of menswear from G-Star RAW. The range offers garments of the highest possible quality, precision engineered for an i n d u s t r i a l a p p r o a c h t o sophistication.

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Apparel - Collection

August 2014 04DENIM CLUB INDIA

For Fall/Winter 2014, Japanese 14 oz. selvedge denims in deep shades of Mazarine Blue have been constructed into modern-classic cuts. The premium denim fabric has been produced on traditional looms by highly skilled craftsmen, a must-have for any denim aficionado. The collection also includes pieces with unique asymmetric washings that convincingly mimic natural wear.

The G-Star Lumber is an exemplary piece, inspired by the workwear of mid-19th century American lumberjacks, and available in raw or aged versions. The Lumber features a cinch back, originally used to adjust fit, and brace buttons, from a time when the use of braces dominated belts.

Source: Denimology.com

Indian Terrain is an authentic sportswear brand which firmly believes that simplicity is luxury. Working on this principle, the company has been creating apparels that are stylish yet comfortable, and can be worn to both work and play. Focusing on the core brand strengths and consumer dynamics, the brand is w o r k i n g o n i t s r e t a i l a n d communication strategy to establish strong presence across the country. Amitabh Suri, Chief Operating Officer of Indian Terrain Fashions expresses “We have a lot of franchise queries coming in. Our products have established themselves in the market and we are looking forward to good times.”

The brand grew by almost 50 percent last year and revenues jumped from Rs 157 crores to Rs 232 crores in FY 2014. Net profit has more than doubled to around Rs 10 crores from Rs 4 crore the previous year. Indian Terrain currently retails through 750 MBOs, 175 LFOs, and 110 EBOs. The company is looking to 25 percent growth within the next few years.

The CEO of sports lifestyle brand Indian Terrain, Charath Narasimhan feels that there would be an upswing in consumer sentiment, which would lead to a rise in spending and sales in the forthcoming festive season. He is hopeful that the buoyancy in business sentiment, that would be witnessed by the industry in next six months, will continue for coming two-three years.

Source :Fashionunited.in

Indian Terrain re-launching vintage denims this winter

Indian Terrain initially started with manufacturing of shirts and trousers, however today it offers a wide range of work shirts, cotton trousers, denims, polo T-shirts, as well as fashionable sweaters and jackets for winter. The brand unveils four collections each year. Fast fashion is becoming the need of the hour as customer tastes keep changing. Therefore, launching new collections at a greater frequency is fast becoming a priority.

For Autumn/Winter 2014, the brand focus will be on tonal ensembles with innovative fits, garment finishes, and laundry. The company is also planning to re-launch Indian Terrain Vintage Denims this winter.

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Apparel - Collection

August 2014 05DENIM CLUB INDIA

Bootlegger has announced its new Fall fashion and Denim collections, including the re-launch of Bootlegger branded jeans. Fall fashions include the latest in branded jeans from Silver, Mavi, Buffalo, Joe’s and Guess, as well as new women’s fashion from Kismet and Temperance and new men’s styles from Distillery, Oakland and Affliction.

Additionally, the destination jeans retailer has reinvented its own branded label, Bootlegger jeans with a full line up of styles for both men and women boasting premium fabrics and perfect fits, at affordable prices.

From fits to fabrics, the latest Bootlegger jeans are clean and classic, and the premium soft fabrics feel amazing. The darker washes can be dressed up or down, while medium washes offer a more casual, lived in feel.

Bootlegger jeans for women are available in Straight and Curvy fits in both Skinny and Slim Bootcut silhouettes, as well as a new Boyfriend jean. Men’s offers four silhouettes: Skinny, Slim Straight, Straight and Loose. Additionally, Bootlegger has developed a new women’s Bootlegger Curvy Skinny black jean – Forever Black. Fadeless and stretchy this black denim can withstand repeated laundry cycles without colour loss or loss of shape.

Dustin May, General Merchandise Manager for Bootlegger says. “We are thrilled with the early response from the new collection – with rave reviews of both the style and the comfort that we all want to feel in our jeans.” Bootlegger jeans are priced at $59.50 and $69.50.

The entire new line-up of jeans, including Bootlegger, have been showcased in the new Denim Look Book, including newness in soft, stretchy and light-weight denim from Mavi, Buffalo and Silver. The result is incredibly comfortable jeans like nothing you’ve owned

before. From jean leggings, to relaxed and sexy boyfriend jeans and the incredible fleece jeans from Buffalo that look like jeans, but feels like your favourite sweats, there is no more compromising style for comfort this season.

"This year’s fall fashion collection is very exciting and makes for a perfect pairing with the new jean collection," says Bootlegger President, Chris Phillips. “We are thrilled to re-launch Bootlegger jeans and genuinely believe the customer is going to love living in these jeans.” It’s a proud moment in our Bootlegger story and it’s all captured in these great look books.”

Fall fashions and the new Bootlegger jeans are arriving now in stores and online at bootlegger.com.

Bootlegger Re-Launches Jeans Line with Fall Fashion Arrivals

Source: Pr.com

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Industry - Outlook

DENIM CLUB INDIAAugust 2014 06

Cotton prices slide as demand drops

Source: Stockjournal.com.au

According to India's largest denim maker cotton prices are set to fall to a five years low as demand slows in China, the world's biggest consumer, and India heads towards a record crop. Sanjay Lalbhai, Chairman of Arvind Ltd., denim maker and retailer of Gap and Tommy Hilfiger brands said Prices are poised to retreat to a range of US 55¢ to US 60¢ a pound by December.

The harvest in the south Asian nation, the world's second-largest grower, might jump to a record 40 mi l l i on ba les o f 170 kilograms each in the 12 months starting October 1, from 37 million bales this year, he said.

Futures slumped 21 per cent in New York this year, making it one of the worst performers on the Bloomberg Commodity Index of 22 raw materials, as global stockpiles increase to a record high. Lower prices would help reduce costs for Gap and Levi Strauss & Co, as the US government predicts the country's inventories will expand at the fastest pace in three decades.

"Cotton has an oversupply situation both in the global market as well as the domestic market," Harish Galipelli, head of commodities and currencies at Inditrade Derivatives and Commodities said. "The demand dynamics are also weakening as countries like China have got a lower appetite."

Futures have declined 31 per cent from a two-year high of US 97.35¢ on March 26 and traded at US 66.76¢ on ICE Futures US on Wednesday.

According to data from the General Administration of Customs China's imports have fallen 39 per cent to 1.67 million tonnes in the first seven months from a year earlier. The country holds more than half of the global inventory, the US Department of Agriculture

estimated on August 12.

Slowing demand from China would reduce India's exports next year even as the harvest increases, Mr Lalbhai said. Shipments are estimated at 11.4 million bales this year, he said. "It's going to be a challenge to export the same amount of cotton next year," he added. Prospects for yarn exports, mostly shipped to China, may also be hurt by weakening demand.

Stockpiles in the US, the world's biggest exporter, will probably more than double to 5.6 million bales of 218 kilograms each by July 2015, the biggest increase since 1986, the USDA said. Global reserves are poised to reach an all-time high of 105 million bales.

According to Sabrina Simmons, Chief Financial Officer, Gap, declining cotton prices are "good news" for Gap and will benefit the company.

Futures will probably find support in a range of US55¢ to US60¢, equal to the rate Chinese traders can import without government quota restrictions, according to Paul Reinhart AG. The price is equivalent to US65¢ including shipping and insurance at Chinese ports, Thomas Paul Reinhart, said head of sourcing and marketing China.

Industry - Event

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DENIM CLUB INDIAAugust 2014 07

Munich Fabric Start + Bluezone from 2 - 4 September, 2014Munich Fabric Start will open the Autumn/Winter 15/16 season for fabrics and findings from September 2-4, 2014, at Munich Order Center MOC & Zenith Hall Lil ienthalallee, in Germany. Approximately 20,000 international trade visitors are expected, including buyers, designers and product managers from renowned labels, who all utilize the ranges at MUNICH FABRIC START – from exclusive premium basics to high-fashion items in women’s and menswear – for the creation of their collections.

Wolfgang Klinder, Managing Director, Munich Fabric Start states “We offer around 950 suppliers from 35 countries an ideal platform for the presentation of a total of 1,500 collections. We see the compilation of this selective portfolio as o n e o f o u r m o s t i m p o r t a n t responsibilities, which enables us to serve the demands of the market and the most important segments in the currently best possible manner.”

The Munich Fabric Start has different areas including Collections area hosting about 600 manufacturers for fabrics and knit materials from wool, cotton, silk and functional materials in two halls on two levels. The Additionals space shows the developments of over 180 international leading manufacturers for accessories and trimmings. At the Asia Salon, about 100 partners present their developments from China and Korea. The Design Studios offer individual solutions for prints, patterns and designs. Moreover, the OrganicSelection builds, in collaboration with the Eco Village, the platform for sustainability, presenting a selection of 500 certified materials and accessories with sustainable production background.

On 2 and 3 September the innovations in the denim and sportswear sectors will be presented at the BLUEZONE in the neighbouring Zenith Halle, which also completely sold out once again. Approximately 75 international weaving mills, finishers and laundries, including several new participants, such as US Group, Denimco, Sartex and others will be present in the Blue Zone. Simultaneously, BLUEZONE is experiencing a stronger demand and a desire

for increased stand and presentation area which confirms this presentation date as an important event in the denim community‘s international trade fair calendar.

BLUEZONE will be carrying the slogan “RACE and ZEN” – two life philosophies collide here to create a composition of contradictions that will serve as a stage for the presentation of the stylish and trendy range of denims and flats forthe 2015/2016 Autumn/Winter season. The tendencies here come from two directions: one is more technical and functional, featuring jeans with woven-in Kevlar and integrated protectors, while the other is more meditative, OM oriented and peaceful.

The Autumn.Winter 15/16 trends will be presented in the elaborately arranged Trend and Sample Areas, and in the Colour Forum in the foyer. We work to identify the essences from approximately 10,000 fabric submissions for this bundled information.

The show also features trend seminars in cooperation with WGSN. On Tuesday, September 2 at 1pm and 3pm as well as on Wednesday, September 3, at 11am and 2pm, denim expert Natalie Sigh will present a trend-setting forecast about key looks, materials and colors for fall/winter 15/16.

Source: Munichfabricstart.com

Industry - Financials

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DENIM CLUB INDIAAugust 2014 08

Over capacity continues to affect Denim Fabric Manufacturers marginsThe first quarter results for 2014 indicate that over-capacity continues to take a toll on the finances of denim fabric manufacturers Except for Arvind and Nandan, a couple of the top companies with good export orders, most others have recorded losses or a decline in net profit.

Industry experts say denim fabric producers will have to increase export penetration in the coming quarters. Aarvee Denims & Exports had a net loss of Rs 1.6 crore for the June quarter against a net profit of Rs 3.7 crore in the same period last year. KG Denim reported a loss of Rs 1.3 crore as compared to a net profit of Rs 3.6 crore for the corresponding quarter.

“The denim industry is facing price pressure, with fabric prices seeing a correction. This has been the case with those depending mostly on the domestic market. Thankfully for us, over 60 per cent of our denim business comes from exports and the other 40 per cent from the domestic market, with major brands being our clients. This has helped us maintain 100 per cent capacity utilisation,” Jayesh Shah, director and finance head at Arvind had earlier told Business Standard.

Experts says the oversupply situation is likely to stay for a while. A focus on strengthening of exports and exploring newer markets will help

denim fabric manufacturers to improve profitability in the next few quarters.

Deepak Chiripal, chief executive officer of Nandan Denim stated “The revenue and profitability growth has largely been on the back of increased scale of operations in the denim and shirting segment, and improvement in denim fabric sale realisations. The company continues to focus upon strengthening the market share in domestic and global markets.”

The overall denim industry capacity is estimated at 1.2-1.3 billion metres a year and utilisation at 700-800 million metres. And, another 80-100 mn metres of capacity is likely to be added in a year.

Source: Businessstandard.com

Net profit plunges for Chinese textiles producer Weiqiao

In the interim results released for the first six months of 2014, net profit at Weiqiao Textile Company Ltd, the largest cotton textiles producer in

China, plunged 21.1% over first six months of

2013. Net profit at Weiqiao Textile slipped to RMB 210 million in the first half of 2014, down 21.1% over the corresponding period of last year.

The revenue for the period January to June 2014, also feel to RMB 5,973 million, a decline of 10.9% from the first half of 2013. In the half-year under review, gross profit totalled to RMB 506

Corporate - Manufacturing

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DENIM CLUB INDIAAugust 2014 09

Envoy Textiles to set up a spinning unitEnvoy Text i les Ltd, the Bangladesh-based denim fabric manufacturer is planning to set up a yarn spinning unit, w i th 80 percent o f the production to be used for internal consumption, and

remaining to be sold in the open market.

The spinning unit, to be set up at a cost of around Taka 235 crore, is expected to begin commercial production in the first quarter of 2016, the Daily Star reported.

Earlier on August 18, Envoy Textiles signed an agreement with HSBC Bank and BRAC Bank, who together will finance about USD 20 million of the project cost. The new spinning plant will have a yarn production capacity of 17,500 tons per annum.

“We will be a fully vertically integrated textile manufacturer after installation of the plant”, said Abdus Salam Murshedy, MD of Envoy Textiles.

He added, “Yarn produced at the unit will reduce the cost of production and increase the quality of our products and we will be able to be more competitive in the international markets.”

The bank borrowing, which will be under offshore financing arrangement for a maximum of five years, is subject to final approval from authorities.

The machinery for setting up the spinning unit is will be imported from Germany, Switzerland and Japan.

Source: Fibre2fashion.com

million, also down 15.9%, from a year earlier. Gross profit margin also fell 0.5 percentage points to 8.5% year-on-year.

Weiqiao said it recorded a year-on-year decrease in sales volume of cotton yarn and grey fabric as well as lower average selling price, leading to a drop in revenue and net profit, primarily impacted by changes in China’s cotton reserves policy.

Cotton yarn, grey fabric and denim contributed 34.0%, 52.4% and 13.6%, respectively to Weiqiao’s revenues during the first half of 2014.

For six months ended 30 June 2014, Weiqiao was able to reduce selling and distribution expenses by RMB 80 million or 22.3%, mainly by reduced transportation costs. Sales staff salaries and sales commissions also fell 35.3% and 50.0%, respectively. However, finance costs surged 23.9% year-on-year to RMB 268

million in first six month of 2014, mainly from interest expenses heaving 20.8% from a year earlier.

All the declines in selling and distribution expenses are attributed to lower sales volumes and resultant fall in revenues in the period, Weiqiao admitted.

The textile group said it will optimize its product portfolio towards middle to high-end products and boost operational efficiency, both of which will allow it to respond to changes in both domestic and overseas markets.

Weiqiao Textile has four plants and employs around 83,000 people. As of June 30 2014, it produced around 208,000 tons of cotton yarn, 474,000,000 meters of grey fabric and 37,000,000 meters of denim.

Source: Fibre2fashion.com

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From The Denim Directory

DENIM CLUB INDIAAugust 2014 10

Denim Industry Who's Who

Mr. Mukesh Tyagi, DirectorBST Textiles Mills Pvt. Ltd., India

Mr. Mukesh Tyagi did B-Tech [TT] from TIT&S in 1983. He started his career in

the Production Department with Punjab Fibers Ltd., Ropar, and moved on to

Rajasthan Spinning and Weaving Mills Ltd., Gulabpura after a year.

In 1986, he joined Lakshmi Card Clothing Co Ltd., as Sales Engineer and

switched to marketing. He gained extensive experience while working in various capacities with

leading companies including Siyaram Silk Mills Ltd., and M.S Parasrampuria Synthetics Ltd.

In 2005, he promoted a state of the art 100% cotton spinning unit under the name of BST Textile

Mills Pvt. Ltd., along with his brother. The plant became operational in June 2007 and under his

leadership the company has grown steadily and today has the capacity to produce 12,000 MT of

100 cotton speciality yarn in carded and combed varieties.

Mr. Tyagi has paid special attention to key areas such as day-to-day production process controls,

maintenance, manpower, sales and marketing which has in turn made a big contribution towards

the company imanufacutring high quality and cost effective products.

Mr. Kamal Khushlani, Managing DirectorMufti, India

The team at Mufti is led by the young and dynamic Mr. Kamal Khushlani who

has fashion in his genes and had the taste and eye for fashion at the young

age of 24. Mr. Khushlani, was born in 1966 and brought up in Mumbai, and is

a graduate in Commerce. He is possibly the least-visible personality in the

fashion fraternity who has influenced more new fashion than one could imagine.

His knowledge about the industry and its requirements ensures that he is always the first with

new fashion and trends that later get adopted by the industry, sometimes a season later,

sometimes a year later. He can aptly be described as a self-taught fashion designer, brand

strategist and futurologist.

Mr. Khushlani is a firm believer in the wave of culture and fashion that will flow towards the West

from India. His current obsession is to help that wave along and position his brand in the best

possible manner to exploit it. His ambition is to make Mufti India’s first fashion world brand. It’s this

vision and foresight that has always kept Mufti ahead of times and competition.

He is a leader and the key attributes that have fuelled his success include his ability to think

ahead, being fair in all dealings, ability to looks at people’s abilities rather than shortcomings, and

a firm belief in nurturing and maintaining relationships created during the journey from a small

business to a major fashion brand in India.

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From The Denim Directory

Company:

Segment: Fabric

Suryalakshmi Cotton Mills, was started by Mr. L. N. Agarwal in 1962, with 6,000 spindles to manufacture world class cotton and blended yarns, with a vision and commitment to establish the company as a leading enterprise in the textile industry.

The Company operates in three divisions: yarn, denim and garments. The company provides spun p o l y e s t e r y a r n s , p o l y e s t e r c o t t o n combed/carded/blends, and polyester viscose yarn/blends; and denim fabrics, including m e r c e r i z e d , c o a t e d , n o r m a l f i n i s h , cotton/polyester, color, mill washed, and yarn dyed/over dyed stretch and rigid fabrics.

The company has grown multifold in just four decades and also established the state of the art denim manufacturing plant having a capacity of 40 million meters per annum. Today the yarn and rope dyed denim of Suryalakshmi are acknowledged as high quality products across international markets.

The denim plant of the company is situated at Ramtek near Nagpur, Maharashtra and equipped with the state of the art machines to produce world Class denim. The finishing range is from Monforts. The Company has airjet looms of Nissan, Toyota.

The on going programme of modernisation and higher production Capacity has resulted in its denim production multiplying from the initial capacity of 10 million meters to the current 40 million meters per annum, while yarn production capacity has also increased multifold.

The garment unit of the company has a capacity to produce 5000 garments per day and is well equipped with machinery from Italy, Japan and Singapore. The state of the art garment unit has a high level of

Suryalakshmi Cotton Mills Ltd., India

Mr. Jay SoyantarVice President - Marketing+91 40 3057 1600jay@suryalakshmi.comwww.suryalakshmi.com

automation to ensure consistency in Quality & Productivity.

The Company is equipped to manufacture both Rope Dyed and Sheet Dyed Denim fabric. Having Open End spinning as well as Ring spinning systems in-House, the product range of the company boast of 100% Ring, Ring X OE, 100% OE Denim to suit the market needs. Both in Rigid & Stretch, Special finishing like flat finish, Coated, Mercerised etc.

Suryalakshmi crafts quality fabrics offering a diversified product range and the entire process is closely monitored with online process control systems at almost every stage of manufacturing. The offline quality assurance laboratory is well equipped and ensures that customers gets true value and services. Experienced personnel are supported with latest color measurement and monitoring techniques and quality management systems ensure the consistency through out the product life.

The company employs various methods of staying abreast of the latest trends in denim. Product Development is a continuous process; starting from fabric stage and carried through to the garments.

The company has a large transnational network backed up by a strong marketing presence. The company has a strong international presence and is catering to renowned brands in USA and Europe such as V F, Marks & Spencers, Li & Fung, LS & Signature, Walmart, ASDA, TESCO, Miss Sixty, Mango to name a few.