by Apparel Resources News-Desk
15-April-2019 | 2 mins read
Khadi has been a new rage in India from some time now and it is not showing any sign of slowing down in the near future. With sales rising 28 per cent to Rs. 3,215 crore in 2018-19, Khadi has registered its one of the most rapid successes in recent years.
“There has been a very good response across segments be it fabric, readymade garments and even solar vastra. During the last five years, we have seen a quantum jump every year.” – V K Saxena, Chairman, Khadi and Village Industries Commission (KVIC)
While KVIC has been complaining of production growth not keeping pace with demand, it reported a 17% jump in production to Rs. 1,900 crore in 2018-19, compared to 7% a year ago.
KVIC’s revenue comes from sale of khadi but the majority of it is from village industry products such as food products and cosmetics, which are many times bigger in share than garments.
The steady growth in khadi sales has helped KVIC bridge the gap with some of the leading garment majors, which are seeing a slower pace of growth.
In 2017-18, Aditya Birla Fashion and Retail, which boasts of leading garment brands in its portfolio, reported sales of Rs. 7,181 crore, while Raymond had consolidated revenue of over Rs. 6,000 crore, but both companies saw a growth of under 10%. Fabindia, which is seen to be a rival to Khadi, had sales of over Rs. 1,000 crore but the growth was almost flat.
Saxena has set a sales target of over Rs. 5,000 crore for the current financial year, buoyed by the recent spurt in demand. However, the target is highly ambitious given that it will require a growth of 55% which is unprecedented at least since 2004-05.
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