Having gained experience in its long association with major fashion brands in the US and Europe for over two decades, Gujarat-based vertically-integrated textile manufacturer, Digjam Limited, is now contemplating entering the readymade garments space.
The publicly-listed company, at present, feeds the readymade garments segment in a big way by exporting around 45% of its annual five million metre production to Europe, India's second largest market after the US.
“Readymade garments segment is not a direct entry target for us now as we actually do not want to hit our own customer base.
We, however, are constantly evaluating that space and we will get into it whenever it make sense,” C Bhasker, managing director of Digjam Limited, told Business Standard. Bhasker, who inaugurated the company’s sixth exclusive retail showroom in Hyderabad today, taking the total number of its outlets across the country to 35, said that the Indian textile industry today was not conducive to huge volume expansion but had a great scope for product enhancement. At present, the branded readymade apparel market in India is estimated at about Rs 5,000 crore, and is expected to grow at compound annual growth rate (CAGR) of 15%. The specialised fabric maker has reported revenues of Rs 180.87 crore in the 2011-12 financial year, and expects to garner a little over Rs 200 crore this year. Bhasker said that the European sovereign debt crisis had weaved a scrambled web, creating an export slump for the Indian textile industry. “This is not a great year for the Indian textile industry. as our primary export markets are very much under pressure. We cannot remain unaffected in an overall bad market ... we are feeling the pinch as badly as others,” he added. Digjam’s scrip is currently trading at Rs 7.06 on the Bombay Stock Exchange, up 2.32%, over the previous close of Rs 6.90.