Gujarat has rightfully earned the titles like ‘Manchester of the East’, ‘Textile State of India’ and ‘Denim Capital of India’. As India’s top cotton producer, Gujarat commands a significant 35 per cent of India’s cotton output and contributes 28 per cent to the nation’s overall cotton yield. The state’s textile sector is a powerhouse, fuelling 18 per cent of India’s textile production. The state dominates with 30 per cent of woven fabrics, 65 per cent – 70 per cent of denim and produces 50 per cent of the country’s processing machinery and 90 per cent of its weaving machinery. Gujarat also leads in technical textiles, contributing 25 per cent of India’s output. The upcoming PM MITRA Park in Navsari will further boost the state’s thriving textile sector.
While Gujarat as a whole is a powerhouse of the textile industry, Ahmedabad is considered one of the biggest Indian cotton textile processing hubs, with more than 800 units having an installed annual fabric processing capacity of over 3,500 million metres. It’s also a denim giant, with 20 out of India’s top 40 denim fabric producers calling Ahmedabad home, including industry leaders like Arvind, Ashima, Jindal Textiles, Aarvee Denim, Nandan Denim, Soma Textiles & Industries, Modern Denim, Vinny Overseas and Vishal Fabrics amongst others.
Supported by institutions like ATIRA (Ahmedabad Textile Industry’s Research Association) and NID (National Institute of Design), Ahmedabad’s textile ecosystem is rich with innovation and skill development. The city is also leading the charge for a greener future. After years of negotiations, textile mills in Ahmedabad, including standalone dyeing and printing units, will now get treated industrial wastewater at Rs. 30 per kilolitre, reducing groundwater reliance. The Narol and Danilimda industrial clusters in Ahmedabad house numerous small and medium-scale textile units, which rely on groundwater for dyeing, washing and processing and they will benefit from the new development.
Adding to this, a new textile industry park focused on addressing pollution is set to rise near Ahmedabad, covering 100 acres in Mahijada village.
The denim sector in Ahmedabad is also bouncing back after a slow period that began in June 2023. Plants, which were running at just 50 per cent – 60 per cent capacity until November, started recovering in December, driven by a strong domestic festival and wedding season, as well as reduced global inventory levels. This rebound has been reiterated by Rahul Shah, Co-Chairman of the Gujarat Chamber of Commerce and Industry (GCCI) Textile Taskforce.
Major players are also optimistic about the sector’s recovery. Arvind Ltd., for example, reported a strong denim order book for Q4 of FY ’24 and expects a significant rebound this quarter. Vinod Denim, with a capacity of 50 lakh metres per month, is operating at over 80 per cent of its potential. Sri Shyam Fashion India Pvt. Ltd., which has a denim fabric manufacturing plant with a 10 lakh metre monthly capacity, is running at nearly full capacity.
Moreover, the stability in cotton prices, currently hovering around Rs. 56,000 per candy, has further boosted confidence, marking the most competitive rates in the past two years.
Focus on brand building
Ahmedabad’s textile industry is not only thriving in production but also evolving strategically. The region is witnessing an increase in jeans manufacturers and denim mills launching their own retail brands. With India’s retail market valued at over US $ 71 billion in 2022 and expected to surpass US $ 131 billion by 2027, major players like Spykar, Mufti, Killer Jeans, Cantabil and Flying Machine as well as smaller and medium-sized businesses are venturing into the retail space.
Team Apparel Resources connected with these players in the jeans and denim fabric industry and discovered a strong focus on the value fashion segment for future growth and it’s clear why — it’s the fastest-growing sector in the apparel industry and makes up a whopping 57 per cent of the entire apparel market. According to a report by Motilal Oswal Financial Services, while the overall value apparel category is expected to grow at 6 per cent CAGR from CY ’20-25, organised value apparel retail is set to outshine the rest with a projected 13 per cent CAGR during the same period.
This boom, extending well beyond metros and Tier-1 cities, is driven by rising disposable incomes, a shift towards millennial and Gen Z consumers, rapid urbanisation and an increasing demand for organised retail experiences that offer better shopping value.
For instance, Artex Apparels, a stalwart in kids’ clothing since 1982, specialising in denim and wovenwear, sees the domestic retail market as its growth engine. Its in-house affordable fashion brand, Tales & Stories, caters to kids aged 2-14 and recently expanded into womenswear.
“In the coming year, we plan to open around 13 new stores to our existing 23 and increase our revenue from Rs. 14 crore to Rs. 34 crore,” said Chairman and CEO Praful Shah, emphasising that value fashion retail is the ‘area with the highest demand’.
| The denim sector in Ahmedabad is also bouncing back after a slow period that began in June 2023. Plants, which were running at just 50 per cent – 60 per cent capacity until November, started recovering in December, driven by a strong domestic festival and wedding season. |
Fast fashion brand FREAKINS, launched in 2018 by garment manufacturer Avadat Apparels, targets Gen Z with its curated high street fashion for those aged 15-25, offering a wide range of denim products for both men and women. “We currently operate two stores in Mumbai and plan to open 40 more in the next few years,” said Sachin Shah, Co-founder of FREAKINS and MD of Avadat Apparels, which produces 200,000 garments each month.
Whereas, a budget-friendly fashion brand, Colorhunt, launched by fabric manufacturer Bleedblu in 2012, thrives by partnering with high-volume, low-margin stores, malls and retail chains. Offering a diverse range of menswear including denim jeans, cotton trousers, shirts, T-shirts and shorts, Colorhunt distributes its products through its wholesale store in Ahmedabad across all 28 states in India, as well as in Dubai and Sri Lanka, achieving an annual turnover of Rs. 40 crore. “We’re gearing up to launch a B2C website for Colorhunt and plan to open our retail store within the next two years, announced Paras Sanghvi, CEO of Bleedblu.
Both Colorhunt and FREAKINS use their in-house factories to keep prices competitive and ensure high quality. “Our in-house production allows us to manage costs effectively and maintain top-notch quality through a dedicated quality control team,” explained Paras. Similarly, Sachin noted, “Owning our factory allows us to keep prices competitive, though we also recognise the benefits of outsourcing for items like T-shirts, shirts and sweatshirts.”
Yet, these players agree that building a successful retail brand isn’t easy. “It starts with understanding your target audience and connecting through smart marketing. Success comes from offering the right product at the right price, managing inventory efficiently and having a strong team,” said Sachin.
Beyond Retail: Manufacturers’ Growth Hacks
In the fast-paced denim industry, jeans manufacturers and denim mills aren’t just focusing on retail—they’re elevating their game across the board. By investing in top-quality yarn, slashing turnaround times and harnessing cutting-edge tech and custom ERP systems, they’re driving efficiency and staying ahead of the curve.
“We stay ahead by forecasting trends and prepping fabrics early, delivering in just 30 to 45 days,” said Paras of BleedBlu, which sells one million metres of fabric monthly, 80 per cent of it being premium. He added, “Major players dominate innovations in blended and MMF yarns, restricting access to materials like Tencel and polyester. We’re concentrating on internal yarn development to enhance fabric quality and drive innovation.”
Similarly, Sachin noted, “We’re all about speed and efficiency. With minimum order quantities as low as 100 pieces and a swift six-week turnaround for new designs, we’ve ramped up from producing one lakh pieces annually pre-Covid to two lakh pieces a year with fewer resources, thanks to our advanced automation and custom ERP system.” Avadat Apparels, collaborating with brands like Zudio from Tata, reports an annual turnover exceeding Rs. 100 crore, with 70 per cent coming from the domestic market.
Some companies are also opting for lower profit margins to build strong relationships and boost sales. “While others target 10 per cent profit margins, we’re working with just 4 per cent – 5 per cent to boost sales and build strong relationships. Our goal is to position our company alongside industry giants like Arvind and Sintex within 8-10 years,” explained Nikunj Bhatt, Executive Partner, Saffron Spinfab. The fabric manufacturer produces 12 lakh metres per month and boasts an annual turnover of Rs. 70-80 crore, largely from exports.
Swapnil Patel, MD of CA Patel, revealed that the company is expanding its domestic footprint with a focus on casual and semi-casualwear. Currently, they produce over 50,000 garments a month and generate Rs. 40 crore in revenue, serving clients like Nautica, D-Mart and V-Mart. Swapnil highlighted a recent addition of 1,25,000 shirts and 80,000 bottoms to their lineup, which is set to double their revenue to Rs. 80 crore soon.
To stay ahead, companies are also investing in new machinery, expanding R&D departments for in-house processes like washing and sampling and adopting sustainable practices such as zero liquid discharge systems and 100 per cent renewable energy.
