Market sources convey that production of denim is being reduced due to over capacity.
The prices of denim went down by Rs 5 to 6 per metre because of over production and so denim manufacturers in the city had to reduce their production, said Yamunadutt Agrawal, President, Ahmedabad Textile Processors' Association.
Agrawal is also chairman of Jindal Worldwide, which has invested around Rs 95 crore in textile, including Rs 25 crore on denim production in the city.
Though many denim producers have reduced their production, we have to go ahead with expansion plans per schedule, he said.
Agrawal informed that companies such as Aarvee, Arvind and other larger denim manufacturers have reduced production up to a certain extent.
Denim manufacturers will face problems unless they start exporting more garments than fabric.
Vinod Arora, CMD of Aarvee Denims and Exports said that some denim fabric manufacturing companies in the city have slowed down expansion process.
Arora said the company's expansion plans are going on as per schedule and will be launching a demin brand soon.
Arvind Denim's spokeperson said the company has not reduced production.
Ved Prakash Chiripal, Chairman of Chiripal Group of Companies who owns Nandan Exim said denim market is facing problems in prices which will rise as demand rises but on production front, there is no problem, said Chiripal.
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