The Rs 30,000 crore Indian denim industry is likely to face a shortage of fresh investment in the next five years with around 30 per cent of capacity remaining idle for years.
Over the last five years, India’s denim makers have more than doubled capacity to 1.3 billion meters a year because of an abundance of cotton and subdued fibre prices. But lack of technological innovation among Indian manufacturers and the entry of international brands have forced almost a third of the country’s denim capacity to idle. “With 42 mills in operation against 25 five years ago, India’s denim capacity has more than doubled to 1.3 billion meters. Of this, 30 per cent remains unutilised,” said Subir Mukherjee, business head, denim, Bhaskar Industries, one of India’s largest denim manufacturers.