In a strategic move to increase its customer base, meet the changing demand in an increasingly volatile market and build an edge over the competitors, Vardhman Textiles has expanded its product basket to include stretch and high-stretch fabric for men’s clothing. “Next on our agenda are Modal blends,” informs Kulbir Kundu, Country Manager of Vardhman Textiles, Bangladesh while talking to Team Apparel Online.
Though for many buyers cotton fabric is still a major demand, Vardhman does not want to be perceived as a ‘cotton only’ company and is keen to position itself more strongly in the market by offering blends of Poly, Modal and Tencel, all of which are trending currently. Kundu reasons that the company has to take into account a product’s lifecycle, which is getting shorter and also keep abreast with the latest fabric trends. What is also driving the company’s expansion is the fact that there is increasing production of locally made basics, plus the local manufacturers also have the advantage of a shorter lead time. “For fabric coming from India, the transit time is about three weeks, so buyers are now strategizing by sourcing locally made basics, and importing only the specialized products,” says Kundu.
Strategically, Vardhman began its journey 5 years ago by targeting major buyers like H&M, C&A, Uniqlo, and M&S, which ensured quick and regular orders, helping it close the year with volumes touching 19 million metres, amounting to business of US $ 50 million per annum. But with the emergence of new fabrics and local suppliers, the company began to feel the pressure to meet changing demand season after season, which was also reflected in the slowdown of growth on year to year basis.

Vardhman found the solution by putting more emphasis on product development. “Our design team now interacts regularly with the designers of the buyers,” says Kundu. This proactive approach has helped them to meet different buyers’ needs, including RFD poly-cotton high-stretch fabric, besides blends to fast fashion retailers, such as Zara, H&M and Uniqlo which are some important brands for the company, each having a different need and a different way of working. “H&M is working to reduce delivery time, so they follow certain basic styles for which their base fabric remains the same. On the other hand, Uniqlo changes its styles, fabrics and colour range more frequently, even though they work in volumes and never repeat their products after two seasons,” informs Kundu.
The trend of buyers taking decisions at the last stage of development in order to minimize risk, is putting a lot of pressure on the fabric manufacturer’s lead time. For brands like Zara, the lead time is a maximum of 50 days, which includes fabric plus garmenting, and the shipment is air lifted twice a week. Even in such a short time frame, the colours are selected at the last stage. Meeting the challenge, Vardhman is offering both solids and yarn dyes. “For solid colours, projections are made in advance and accordingly we are prepared, but for yarn dyes, production starts only after the design has been finalized,” he adds.
Having decided to service the fashion segment, Kundu foresees very challenging days ahead for the company, not only due to reducing lead times, but also to an increasingly volatile domestic market where competition is heating up as Bangladesh grows in the fabric segment, particularly in denim, shirting, and the finer varieties of fabric. To reduce its lead time at the back-end from the earlier six weeks to four weeks, the company has advanced its production time. “While some customers confirm their order date, some decide for later. So the onus is on us to take a call, and we take that call,” he says confidently.
With the right strategy in place, Vardhman aims to reach 20-22 million metres in volumes by increasing its current levels by 10-15 per cent in the current financial year. To achieve this, it plans to expand its customer base and penetrate deeper into the market by leveraging its brand equity. Kundu proudly shares that the company has a good reputation for timely delivery, competitive pricing, consistent quality, and is supported by a huge facility with in-house spinning, weaving and processing. But he humbly admits that all this could prove to be a business generator only because of very loyal and supportive customers. Going forward, the company is now looking to add some medium-size buying houses to enhance business.






