Apparel industry has grown by 9.15 points in April-June quarter of the current year as per Apparel Index prepared by the Clothing Manufacturers Association of India (CMAI). The index was launched in last year with 13-14 as a base year and index value at 100 which means June quarter has grown by 9.15%.
Interestingly, Mid Brands has emerged as a winners. Branded apparel sale in the industry is estimated at Rs.2 lakh crore out of which one third is of unstich and rest is stitched apparels. Since 80% of the industry is in the small and medium segment the growth seen in Mid brand segment is significant.
Around 100 brands of various values have been surveyed.
CMAI said in a statement that, "Mid Brands with a turnover of Rs 25-100 crores, were the biggest gainers registering the highest value growth at 3.34 points in the index where as Giant Brands, with a turnover of above Rs 300 crores had the lowest growth value of 1.33 points.
CMAI said in a note that, "after a long lull, there is optimism among apparel retailers and brands compared to the same quarter last year, when they were bogged down by low consumer sentiment, high raw material costs and other negative factors. However, the there is a sense of optimism in this quarter as most respondents have reported growth and control over inventory. Only less than 4%, have reported negative performance."
Meanwhile Fresh Investment saw a tremendous improvement. Nearly 78% respondents reported an increase in investments in capacity building, expansion and technology.