Indian saree market sees big corporates battling traditional players

Larger groups like the Tatas, Aditya Birla and Reliance Retail are slowly making a mark in a Rs 46,400 cr industry that is otherwise ruled by traditional organised and unorganised players

From millennials to matriarchs, the nine yards holds a special place in their lives in not just rewriting the concept of fashion but in also portraying the culture. The sari, which can be traced back to the Indus Valley Civilisation, has wrapped itself around big corporate houses, traditional existing players, and unorganised regional outlets for a slice of customer attention.

Larger corporates like Tata Group, Aditya Birla Group, and Reliance Retail are slowly making their mark in a Rs 46,400-crore industry, which is otherwise ‘hegemonised’ by traditional organised brands and the unorganised players.

While the Tatas were an early mover in the booming market, launching Taneira in 2017, Avantra by Trends from Reliance Retail (2021), and Aditya Birla Group launching Navyasa by Liva (2022) have heated up competition in a growing market.

On the other side of the spectrum are legacy brands like Nalli, Pothys, Kalyan Silks, RS Brothers, Sai Silks Kalamandir, and The Chennai Silks, and a larger unorganised sector. Driven by these aggressive forays and expansion of existing players, the sari market is all set to grow at a compound annual growth rate of 6 per cent to Rs 61,700 crore (Technopak report) by 2024-25 (FY25).

“One of the reasons why we got into saris is because of the large unorganised play. We are going about modernising the whole segment since around 90 per cent of the sector is unorganised. Our whole plan is to organise the unorganised. Our customers are liking the competition we bring in. That gives us the hope of becoming the largest sari brand in the country,” says Ambuj Narayan, chief executive officer, Taneira.

At present, Taneira is present in 11 cities through 28 stores and is aiming at becoming a Rs 1,000-crore brand by 2027, increasing the number of stores to 150 by then.   

Based on a Technopak report, the organised sari market (including the big corporates) is valued at around Rs 12,500 crore and is likely to touch Rs 24,700 crore by FY25 — growing at 14.5 per cent per annum.

“It is our endeavour to demonstrate through Navyasa created by Liva that saris made of sustainable material like Liva delight consumers. This can truly transform the sari industry and usher in the idea of using sustainable fabrics in a traditional industry,” says Rajnikant Sabnavis, chief marketing officer, Birla Cellulose.

“The sari industry in India is large and meets consumer needs across the country. With evergreen and universal appeal across age groups, it continues to grow,” adds Sabnavis.

It is not just the new entrants, old chains, too, are spreading their wings and a section of them believes it will not be easy for corporate houses.  

“The sari business needs a lot of experience and ability. We have been in the business for three generations and manufacture 70 per cent of the drapes ourselves. Corporates may be doing well in other segments, but to make a mark in the sari business is not a wrap,” says T S Pattabhiraman, chairman and managing director of the Rs 1,100-crore Kalyan Silks — one of the largest chains in South India with 30 textile outlets.  He adds that brands like theirs are also adding innovative marketing strategies to woo customers.  

South India holds a higher share in the organised sari market, contributing to 38 per cent of it, with a value of Rs 8,800 crore in 2019-20.

An initial public offering-bound Sai Silks (Kalamandir) and Nalli believe that the entry of big business houses will only benefit the market.

“More players coming in will only increase market potential,” says Nalli Kuppuswami Chetti, founder of Nalli Silks, with an annual revenue of Rs 573 crore.

“The entry of large corporations will further broaden the market, deepen penetration, and reinforce the values we have always stood for. The timing of their entry coincides with the entire paradigm shift towards organised retailing of saris and enhanced customer experience,” says a spokesperson for Sai Silks (Kalamandir).

These companies were badly hit by the pandemic. “We expect our sales to be 90 per cent of pre-Covid levels this year and clock growth in the coming year,” adds Chetti.

There is another section that believes that the new entrants will also bring in more technology. “Corporate are bringing in a lot of innovation. We are providing a personal shopping experience and bringing saris from more than 100 clusters in the country under one roof,” says Narayan.

“Traditional players will remain in the market. New players are bringing in better competition in the fields of ordering, quality checks, and customer experience. This will also lead to the existing chains expanding to tier II and III cities,” says Manmohan Ram, managing partner, Sundari Silks in Chennai.