B’lore beckons denim makers

B’lore beckons denim makers
Raymonds, Century Pool In Rs 150 Cr
The Economic Times

THE SOBRIQUETS for Bangalore seem to be increasing by the day. If in the 60s it was fondly called the “pensioner’s paradise”, by the 90s thanks to the IT boom it was being referred to as the “silicon capital of India.”

And now it may well emerge as the “Denim Capital” of India, despite not being a producer of the fabric. Raymonds and Century Textiles have set up denim garment units in Bangalore. Two of the top 10 names in Indian apparel exports — Gokaldas Exports and Gokaldas Images — have also made a foray into denim bottoms.

Combined, the investment flow into Bangalore thanks to this denim focus is over Rs 150 crore and has the potential to create over 2,000 jobs. The investments into denim manufacturing accounts for a fifth of the nation’s denim jean production capacity. “The end of the multi-fibre agreement (MFA or quota) has given Indian apparel exporters more freedom to expand and we are doing just that,” says Mr Rajan Hinduja, ED(F & A) of Gokaldas Exports.

Gokaldas Exports which recently raised about Rs 135 crore through its initial public offering (IPO) has put up a facility with an annual capacity f 1.2 million pieces. Mr Hinduja says that real estate was one of the reasons for Gokaldas Exports to choose Bangalore and not look at locations like Mumbai which is closer to the denim fabric manufacturing centres like Ahmedabad.

The first phase of Raymond’s denim facility at Bangalore would produce 10,000 pairs daily eventually going upto a whopping 30 million per annum by Jan 1, 2006. “Post-quota, India is figuring in the minds of big merchandisers and big buyers and the country is providing competition to China,” said Mr Gautam Singhania, CMD of Raymond.