Denim producers must brace for higher costs & falling exports
16 Feb '06
1 min read
Denim producers of India face a double whammy in the form of rising cotton prices and declining exports.
Under such circumstances Raymond is all set to face the odds in 2006, says Pradeep Bhandari, Group President, Raymond Ltd.
The 15 to 20 percent fall in denim prices over the past two months, means there is a huge opportunity for capacity build up in Bangladesh, Turkey and Pakistan.
Cotton prices are also expected to increase by 12-15 percent in the near future.
Regarding high value customers, Raymond says it's not just about protecting itself from possible loss but also maintaining better supply chain management and higher realisations in the world market.
The company is prepared well to target high value customers to avoid the situation of over supply.
But industry experts also visualise that there is no reason to fear on long term basis since denim as a product is all-time favourite.
marketing@alchempro.com
