‘2015 – Rs. 100 crore’ – a note on the cupboard, catches your attention instantly as you step into the Director’s cabin of Nagesh Knitwears, Ludhiana portraying the company’s goals which they are hopeful to achieve by 2014 only, as this vertically integrated export house already has a turnover of Rs. 70 crore. The growth projections in the kidswear segment is not only limited to Nagesh Knitwears, in fact, other players in the market are also re-strategizing their operations and expanding capacities for growth. Team Apparel Online visited five key players from the segment in Ludhiana, bringing a first-hand account of the buoyant kidswear market.
While preparations are already in full swing at Nagesh Knitwears to achieve set targets through installation of high-end machines such as Stoll knitting machines and also the construction of an Effluent Treatment Plant (ETP), other companies are not far behind. Jagdambay Exports have already started construction in their existing factories and will soon install CAD and provide for a more organized system in their units. In the coming two years, Paramount Clothing, who are present in the domestic market as well as exports, are looking to expand their capacities. They have already invested in an additional 250 machines to take the total machine strength to 700, all to be installed under one roof. In addition, kidswear manufacturers with domestic brands such as Ziama Fashions and Superkids also have expansion plans in place. However, Sumeet Exports, a big player in kidswear is conspicuous with its absence and could not take out time to meet the AO team. Last year, the company was upbeat of a prospective expansion, which unfortunately did not come through.
No wonder many kidswear manufacturers have registered consistent export growth in the segment over the last few years, even when it is a difficult product category with many stringent regulations to follow. Nagesh Knitwears, which started manufacturing kidswear in 1992, has achieved 250 per cent growth since 2008, by entering markets such as Germany, Switzerland and UK. Earlier the company was limited to France alone, but with the new gauge offerings it is entering into new markets. “We are trying to cope with the tight margins and price pressures through continuous automation which helps us in cost cutting. We earlier took the help of a well-known consultant and in future also we plan to work with some others to improve our company’s systems,” says Rajan Mehra, Director of the seven-decade old company. Nagesh Knitwear is aggressively expanding across its integration, incorporating more and more automation in the departments, including installation of Stoll knitting machines and construction of Effluent Treatment Plant (ETP), which is in full swing. The company has also tried experimenting with fabric constructions by venturing into coarser gauge knitted fabric.
Another important player in kidswear, Jagdambay Exports has recently entered into Belgium, and is getting good orders in kidswear. Balvinder Sharma, CEO of the company claims, “On an average, both volume and turnover wise, we have seen an increase of 50 per cent in recent years and are quite hopeful about the future.” The company plans to increase its capacity and also to diversify the product range. The company has a turnover of Rs. 40 crore in exports and caters to undergarments, accessories, caps and complete gift packages for kids.
Both Nagesh and Jagdambay have plans to enter the growing domestic market but are reluctant to disclose their strategy at this stage Amid the old export houses, the city has witnessed the arrival of a new player in the kidswear segment, namely, Paramount Clothing, whose initial market response has been more than satisfactory. Rakesh Kapoor, MD of the predominantly menswear export house and the man behind the growing brand W&T (Wilkins & Tuscany) says, “The first booking that we received from a domestic garment fair from various retailers, distributors and wholesalers is just awesome. Once we establish ourselves in the domestic market, our next focus will definitely be on exports.” Out of the total of 350-400 styles, the company prepares 175 styles for kids, which just shows how serious the company is to establish itself in the kidswear segment.
For the domestic players, while there is competition from international brands, but when it comes to kidswear, Indians are not that particular about wearing a recognized brand, and also the mass market prefers value-added garments for kids, something that local brands specialize in. While the export houses are enthusiastic of opportunities, domestic players are also witnessing growth and have plans to capitalize on the openings in the market. Ziama Fashions, a US $ 3 million company, is looking to achieve a turnover of US $ 5 million in the coming two years. “We are in the process of tapping markets in Gujarat, Chhattisgarh and Kolkata as we already have a strong presence in the rest of India,” informs Darpan Chopra, Director. To meet the growing demands of their products, the company is constructing a new unit in 2800 square yards at the Apparel Park which will also solve its warehousing problems. “To cater to the lower price segment, we have introduced another brand ‘NINS MODA’ which has found success in the market. We are planning for a more organized production system at the new unit,” adds Darpan.
Meanwhile, Superkids also plans to increase its product basket within the kidswear segment for growth. Primarily, a jacket manufacturer, the company has plans to capture the market for summer season. “Our new 1500 square yards factory will be ready in another year, enhancing our reach and offering in the market,” says Surinder Dhawan, Director. The company growing at a rate of 15 per cent annually has a turnover of US $ 2 million and plans to venture into the e-commerce market, which is today a major growth driver in the kidswear segment.
