Domestic market beckons garment exporters

With currency fluctuations, growing demand for apparels within the country and gradual inflow of FDI, conventional garment exporters like Gokaldas Exports and Go Go International Pvt. Ltd. are increasing their exposure to domestic market.

"There have been the likes of Madura Garment in apparel industry who have been more into the domestic market and there are others like Gokaldas Exports who have primarily focussed on the domestic. However, with the domestic market growing at 15-20 per cent, even the larger, organised apparel exporters are increasing their presence within the country," said Rahul Mehta, president of Clothing Manufacturers' Association of India (CMAI).

For instance, as against the average seven per cent exposure, Bangalore-based Gokaldas Exports is looking at a 20 per cent share of revenue from domestic market for FY 2012. The over Rs 1,000-crore company is bullish about the domestic market in the near future."We have conventionally focused a lot on exports. However, while the export market is growing, the domestic market is getting more attractive these days. Hence, we are consciously making efforts to increase our exposure in domestic market from the current seven per cent to at around 20 per cent by financial year 2011-12," said SN Rangaiah, general manager - finance, Gokaldas Exports Ltd.

According to industry sources, the branded apparel industry in India is pegged at around Rs 20,000 crore, apart from the unorganised players.

Industry sources believe that the move is triggered by a saturation in exports markets. "The exporters are now looking at domestic market also due to a temporary saturation in exports. Markets overseas have not been that robust. Add to that, currency fluctuations have hit the players in the short run," said Sajjan Raj Mehta, secretary, Karnataka Garment Association.