AOI May 2023 New

1. I N D I A MAY / 2023 PAGES 80 | INR 200 DL-(S)-17/3202/2021-23 RNI NO: 67969/98 VOLUME NO: XXVI ISSUE NO: II www.apparelresources.com A L L A B O U T F A S H I O N B U S I N E S S DENIM SUPPLY CHAIN Enjoying Growth Constantly Textrum S/S ’24: Innovative Blends Attract The Industry P/41 Global Apparel Giants Content With ‘Advantage India’ P/48 Evolving Buying House Practices Digitalisation Makes Space! P/37

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4. CONTENTS 27 COVER STORY Global Denim Brands Enjoying Growth In India INDUSTRY VERDICT 12I Is It Right To Say That Now Private Labels Pose Great Threats For Brands? If Yes, Why? If Not, Is It Because Every Brand Has Its Own Loyal Consumers And Values? RETAIL RIGHT// //NATIONAL 14I ‘Open Network Digital Commerce’ (ONDC) Set To Democratise The Indian E-Commerce Industry p20 K-Pop bands and stars are influencing fashion choices across the world and driving South Korea’s apparel market RETAIL RIGHT// //NEWS 18I Overseas Brands’ Growing Thrust On India RETAIL RIGHT// //INTERNATIONAL 20I It’s High Time To Look At Emerging Retail Markets RETAIL RIGHT// //NEWS 24I The US And UK Display Negative Sentiments Recently p37 Buying sourcing practices are evolving with the advent of AI EXPERT SPEAKS 26IIncreased Trust And Small Steps Can Add Value To Collaborative Efforts Of NGOs And The Industry BUYING & SOURCING 37I Evolving Buying House Practices: Digitalisation Makes Space! 39I With Small But Significant Steps, Ravelheart Overcoming Challenges MANUFACTURING 41I Textrum S/S ’24: Innovative Blends Attract The Industry p41 The range at Textrum was exhaustive and the way it was explained to visitors from industry by Team Vardhman in terms of connecting to the end user was good 4 AO India | May 2023

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6. CONTENTS 44I ‘Managing The Company Holistically - Business And Social Aspects’ - Sagrika Jain, ED, Vardhman Textiles 47I ‘The Best Years For Textiles Business Are Yet To Come’ - Mukesh Bansal, EVP, Marketing, Vardhman Textiles Ltd.  48I Global Apparel Giants Content With ‘Advantage India’ p48 Brandix India Apparel City, located in Atchuthapuram Mandal in Visakhapatnam (Andhra Pradesh) is one of the best examples of successful apparel operations in India by an overseas group MANUFACTURING// //NEWS 52I Apparel And Home Furnishing Giants Arranging Fund SUSTAINABILITY 54I France Legislation Regarding Sustainability And Its Impact On Indian Apparel Manufacturers SUSTAINABILITY// //NEWS 56I Leading Indian Companies’ Sustainability Efforts Get Recognition p62 AI technology opens up a new realm of creative opportunities for the fashion and retail industry TRENDS IN FOCUS// //RUNWAYS 58I The Print, Pattern And Colour Report For Fall/Winter 2023-24 FASHION BUSINESS 62I Embracing The Power Of AI: Opportunities And Applications In Fashion, Retail And Customer Experience DESIGNERS & LABELS 66I Perfectly Fit Garments And Wardrobe Consulting: How Karan & Moin Is Redefining Men’s Fashion In India p66 Karan & Moin offers power dressing and celebrationwear for men of all ages and sizes START-UPS 70I Start-ups Fuelling The Growth By Winning In The Gender-Neutral Streetwear Segment START-UPS// //NEWS 73I Funding Continues For Giants As Well As Emerging Start-Ups TRADE STATISTICS 74 I US Apparel Imports (Jan.-Feb. 2023): USA Witnesses Fall In Both Volume-Wise And Value-Wise Apparel Imports! p70 Homegrown streetwear brands have emerged as one of the key wardrobe staples in day-to-day clothing choices 6 AO India | May 2023

7. RESPONSIBLE PRODUCTS EVERY SEASON SUSTAINABILITY 100% rTPE BASE CONTENT SUPER ELASTIC INTERLININGS OFFER EXCELLENT ELASTICITY AND RECOVERY WHILE SECURING MARINE LIFE FROM NEW PLASTICS Freudenberg Apparel House of Sustainability For more information about our 100% rTPE base content super elastic interlining range, please visit our website: https://activerange.freudenberg-pm.com Freudenberg Performance Materials India Pvt. Ltd. CHENNAI Ashok Nagar, Tel: +91 044 42165421 BANGALORE Indiranagar, Tel: +91 080 25262061 TIRUPUR Tirupur, Tel: +91 0421 4329171 MUMBAI Vikhroli (East), Tel: +91 843 3981500 HARYANA Gurgaon, Tel: +91 0124 4018623 April 2023 | AO India7 May 2023 | AO India7 May 2023 | AO India7

8. A P P A R E L O N L I N E Editor-In-Chief DEEPAK MOHINDRA Editorial Owner RENU MOHINDRA Editor Printer ASK ADVERTISING AIDS PVT. LTD. Publisher & Managing Director RENU MOHINDRA & DEEPAK MOHINDRA ILA SAXENA Copy Editor PRIYANKA MISHRA Asst. Editor - News DHEERAJ TAGRA Asst. Editor - Fashion ANJORI GROVER VASESI Asst. Editor - Technical NITISH VARSHNEY Asst. Editor - Retail SRISHTI KAPOOR Published from DELHI Printed at ASK ADVERTISING AIDS PVT. LTD. 88, DSIDC, Okhla Indl. Area, Phase-I, New Delhi-110 020 Phone : 26816824 E-mail: creativegrafix1@gmail.com Subscription AO India Other Editions AO Bangladesh *This rate is valid only for subscription in India Creative INR 2400.00 12 Issues RAJ KUMAR CHAHAL PIYUSH JAUHARI INR 2400.00 12 Issues Management Subscription enquiry +91 98913 74725, 90509 90602 subscribe@apparelresources.com Director MAYANK MOHINDRA Advertising enquiry +91-9810058986 rmohindra@apparelresources.com Collaboration enquiry +91 9810611487 mmohindra@apparelresources.com Corporate Office B-32, South Extension-1, New Delhi-110 049 (India) Phone: 91-11-47390000 APPAREL RESOURCES PVT. LTD. All Rights Reserved © 2022 by Apparel Resources Pvt. Ltd. No part of this magazine may be reproduced or transmitted in any form or by any means, graphic, electronic, or mechanical, including photocopying, recording, taping, or by any information storage retrieval system, without the written permission of the publisher. EDITIONS INDIA BANGLADESH VIETNAM 8 AO India | May 2023 www.apparelresources.com

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10. EDITOR’S NOTE FROM THE EDITOR-IN-CHIEF’s DESK… For India, growth is inevitable Congratulations to India for becoming the most populous country in the world. A lesson well learnt from China’s one child policy. India’s apparel export grew 1.1 per cent in the last financial year despite the world facing hardships. The growth you see in the apparel export sector in the developing world is mainly due to the depreciating value of their currency. However, the interesting part in all this have been the memes depicting the cause of the population increase, to some this rise is due to Covid and for others, the growing population is attributed to the freebees being offered by the Government. Once the global scenario improves, India’s textile and apparel export will also grow as things are in the favour of India, more than most of its competitive countries. Jokes apart, this is both good and bad for India’s growth chapter, however, you look at it. Looking at the domestic market, the per capita expenditure on apparel is expected to reach Rs. 6,400 by 2023, rising from Rs. 3,900 in 2018. As a growing economy, increasing wallet sizes will result in consumers with more money to spend and greater enthusiasm for apparel consumption. To me the interesting part is that 68 per cent of India’s population belongs to 15-64 age group category and 26 per cent are in the 10-24 age group category, making India one of the youngest countries in the world. And the country’s population is likely to start its decline closer to 2050. So for the next thirty years, I feel that we should see this as a positive aspect and a big opportunity as the biggest market, biggest workforce and talent pool as well. With massive schemes from Government like PLI, PM MITRA and the industry’s enthusiastic response to these schemes and announcements for investment in future and my discussion with various industry leaders, I do not doubt India’s growth story at all. There are many more positive aspects that India has like as per India’s National Statistical Office (NSO), the annual per capita income at current price is estimated at US $ 2100 in 2022-23 up from US $ 1060 in 2014-15 suggesting an increase of about 99 per cent, while in real terms, the per capita income has increased by about 35 percent from US $ 891 in 2014 to more than US $ 1200 in 2022-23. The short-term challenges will always be there but there is hardly any country like India with such a stable government and supportive policies, a growth-oriented fast-growing economy and huge opportunities. International Monetary Fund has also recently said that the Indian economy continues to perform well and remains the fastest-growing Asian economy and one of the fastest-growing in the world. Deepak Mohindra Editor-in-Chief From 2017 to 2023, Indian GDP has also grown as in 2017, it was US $ 2.65 trillion which increased to US $ 3.1 trillion by 2021. e-mail me at dmohindra@apparelresources.com Deepak Mohindra Though IMF has lowered its projection growth for India during 2023-24 to 5.9 per cent, it still is the largest among the developed nations. 10 AO India | May 2023

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12. INDUSTRY VERDICT Q&A The private label market and its popularity are continuously increasing. The same is seemingly the thrust of various retailers such as Reliance Trends, Westside, Shoppers Stop, Pantaloons, etc., in their physical stores as well as on e-commerce platforms. Many times, these private labels give tough competition to established brands during festivals or even on odd days. Is it right to say that now private labels pose great threats/challenges for the brands? If yes, why? If not, is it because every brand has its own loyal consumers and values? How do you see the entire scenario and what kind of changes do you expect in long run in this regard? In this entire scenario, the concept of D2C will dominate which brands like us already have besides our in-house manufacturing. into the private label market, the competition has become fierce. Private label brands offer customers an affordable yet trendy option, leading to a significant increase in their popularity. To increase visibility, brands like us need space in established large format stores which they may or may not give, but irrespective of this, our priority will be to reach consumers directly. And all this will ensure our growth in this highly competitive scenario. However, it is not entirely correct to say that private labels pose a great threat to established brands. Every brand has its own loyal customers who value quality, brand image and the entire shopping experience. While private labels offer affordable prices, they may not always match the quality and authenticity of established brands. Anuj Mundra CMD, Jaipurkurti.com (Nandani Creation), Jaipur Furthermore, the essence of offline shopping is very much alive. Customers still value the touch and feel of the garments, the personalised service and the shopping experience. Although e-commerce platforms have made shopping more convenient, physical stores still hold a special place in the hearts of many customers. Yes, private labels are growing well in the apparel retail market and there are enough possibilities that their growth will continue. But I must say that things very much depend on the reach. We started as a label only but with the time and effort we put in, we have become a successful brand today and our thrust is on increasing the reach. Reach is now not only important to tap new customers in new territories but also to retain loyal customers. The more reach a brand will have, the stronger will be the competition for private labels of established and giant retailers. Deepak Aggarwal Founder and MD, Kazo Fashion One of the significant advantages that Kazo has over private labels is its work ethics. Kazo has a reputation for upholding and investing heavily in research and development, design and production. We at Kazo ensure The rise of private-label brands has been a game-changer in the retail industry. With big players venturing 12 AO India | May 2023

13. INDUSTRY VERDICT that our products are of the highest quality while maintaining our brand image consistently. In contrast, private labels may cut corners to keep costs low, compromising on quality and authenticity. brands lack. This is where private labels swoop in. The charm factor of exclusivity is what draws customers in and the community helps establish brand advocacy. With a strong brand language, private labels can carve out a niche for themselves, speaking only to their target audience, as opposed to brands that usually target a broader audience. brands and private labels. So most of the value retailers or the lower segment depend on private labels to give good quality and products to the customers. And private labels will impact brands to a large extent. As far as strategy for others to overcome the impact of growing private labels is concerned, there has to be a strong reason or USP that they need to have such as rare designs and superior quality which can help them excel over private labels and allure customers to spend more money. In conclusion, while private labels have become increasingly popular, it is not entirely right to say they pose a great threat to established brands like Kazo. My forecast for the future is a more collaborative approach rather than competition between these two segments, that is brands working together with private labels. It’s a trend that’s already on the rise and this way brands can communicate with the niche market while labels leverage brands’ market standing. Customer loyalty is still a big thing and many customers value the touch and feel of the garments, which is difficult to replicate online. However, with changing consumer preferences and the increasing popularity of e-commerce platforms, our brand will continue to adapt to maintain a lasting relevance. We believe in incorporating new technologies, offering personalised experiences and maintaining work ethics to retain loyal customers and attract new ones. The physical reach really matters a lot in this entire scenario, at the same time, there is cost involved in managing the supply ecosystem for brands such as investments in distributors or agents. So all these have to be taken into consideration. NEXT INDUSTRY VERDICT QUESTIONS India is growing as a strong economy, and in the past few years, the country’s overall image has emerged strongly. A few Indian brands and retailers are now opening stores in overseas like Being Human Clothing recently opened its second outlet in Bangladesh, Nykaa has partnered with Dubai-based fashion and lifestyle retail conglomerate Apparel Group to expand its footprint in the GCC (Gulf Cooperation Council). There are a few more such companies geared up to expand their footprint at the global level. Jayesh Kothari President, Buying and Merchandising, V Mart Retail Ltd Private labels are doing well and this segment will grow for sure. Private labels are mainly for customer retention and customer experience to provide customers a good value for money. Daksh Kapoor Chief Marketing Officer, Kapsons Group Do you agree that it is high time for Indian brands to explore overseas markets? If yes - why and if no - then why not and when and how Indian brands and retailers will expand their footprints in the international scenario? It may still be early to predict the long-term impact of private labels. To call the private-label market a threat may be an overstatement, but it poses challenges aplenty. The way I see it, the modern fashion consumer is now looking not just for quality but also for exclusivity and community, two elements that established Private labels are becoming priority for most of the retailers and they are doing their best to grow in this segment. Whether it is offline or online, metro cities or tier 3-tier 4, private labels are growing There is a huge difference in the entire costing system/structure of SEND YOUR COMMENTS contact@apparelresources.com May 2023 | AO India13

14. RETAIL RIGHT/ /NATIONAL ‘OPEN NETWORK DIGITAL COMMERCE’ (ONDC) SET TO DEMOCRATISE THE INDIAN E-COMMERCE INDUSTRY platforms can leverage ONDC to provide personalised product information and recommendations, reduce costs and improve the overall shopping experience. ONDC plans to grow big According to Bain & Company, the e-retail sector in India is projected to grow from US $ 150 billion to US $ 170 billion by 2026. Fashion e-commerce shares a good chunk of US $ 15 billion in 2023 out of the total market size. ONDC has set its eyes on expanding the e-commerce reach to 25 per cent of consumer purchases in India during the next two years from the present 8 per cent. The Government anticipates that the ONDC project would ultimately benefit consumers by driving competition and innovation in the e-commerce sector. An initial idea of a unified payments interface-type protocol led by India’s Minister of Commerce and Industry Piyush Goyal along with nine members of the advisory board is a talking point in the e-commerce industry. Named ‘Open Network for Digital Commerce’ (ONDC), the concept was curated to break through the existing constraints as well as hurdles that small e-commerce companies and D2C brands come across amidst the growing dominance of e-commerce giants. The move has been brought about by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry. seller side of the ONDC network to source products. As ONDC aims to build an open, interoperable network on which buyers and sellers can transact without requiring to be present on the common platform, the model is much more than just transaction! It enables merchants to save their data in order to build credit history and expand their consumer base. This, in turn, allows platforms with significant B2B and B2C sectors to connect to new consumers alongside tapping into the ONDC initiative can potentially help consumers make more informed decisions by providing them with access to accurate, reliable and transparent information about the products they are interested in purchasing. Alongside, ONDC initiative can potentially democratise the e-commerce segment by standardising product identification, improving supply chain transparency and increasing consumer trust. E-commerce Within the next five years, the initiative hopes to register 900 million buyers and onboard 1.20 million sellers on the shared network, with a gross merchandise value of US $ 48 billion. An investment 14 AO India | May 2023

15. RETAIL RIGHT/ /NATIONAL of US $ 33.4 million has already been garnered from 20 Government and private companies. Democratisation takes centre stage in ONDC Just like the UPI had provided unparalleled empowerment to Indians, ONDC is also expected to foster interoperability and pave the way for democratising the entire e-commerce ecosystem. ONDC initiative aims to provide a unique digital identity to every product in the country, irrespective of the manufacturer or distributor. This helps standardise product identification and ensures that every product is traceable, which can improve supply chain efficiency and reduce instances of counterfeiting. By enabling sellers and buyers real- time tracking of products, ONDC can benefit e-commerce platforms hugely as it provides them with better visibility into their supply chain, making it easier to identify and address bottlenecks and inefficiencies. With the ONDC coder, consumers will be able to access product information and verify the authenticity of a product before making a purchase. This can increase customer confidence and trust in e-commerce platforms, which can lead to increased sales and customer loyalty. The platform can also help sellers in better supply chain efficiency and reduce instances of counterfeiting. Here are some potential ways by which Indian retailers could be affected by ONDC implementation: ONDC initiative can potentially reduce costs for e-commerce platforms by streamlining their supply chain processes, reducing instances of counterfeiting and improving inventory management. This can result in lower costs for consumers, making e-commerce more accessible to a wider range of customers. Adoption of new technology will be a requisite for retailers to incorporate the ONDC code into their existing inventory management systems. This may require training employees and investing in new software and hardware. Increased transparency as the ONDC initiative aims to improve supply chain transparency by enabling real-time tracking of products. This could benefit retailers by providing them with better visibility into their supply chain, making it easier to identify and address bottlenecks and inefficiencies. targeting. E-commerce platforms can use the ONDC code to target specific consumer segments by providing them with personalised product information and recommendations. This can potentially increase customer engagement and improve the overall shopping experience. The Government may impose compliance requirements on retailers to ensure that they adhere to the ONDC initiative. Retailers may need to ensure that they are using the correct codes and submitting the required information to the Government on time to avoid penalties. This enforcement will certainly have cost implications as the retailers may need to invest in new processes to comply with the ONDC initiative. This could result in additional costs, which could potentially be passed on to customers in the form of higher prices. ONDC implementation’s impact on retailers The Indian Government assigns a unique digital code to every product that is brought for sale on ONDC platform. The purpose of assigning the code is to facilitate product identification, improve Source: Statista, Financial Express, Redseer May 2023 | AO India15

16. RETAIL RIGHT/ /NATIONAL It is important to note that the actual impact of the ONDC initiative on retailers will depend on various factors, including the size and nature of the retailer’s business, the industry they operate in and their level of preparedness for the implementation of the ONDC code. ONDC will help consumers buy better ONDC aims at imparting many benefits to consumers. The topmost benefit is obtaining product information as consumers can scan the ONDC code to get detailed information about the product they are interested in purchasing. This can include information about the manufacturer, batch number, date of manufacture, expiry date and other relevant details. This will also help consumers make informed decisions and purchase products that meet their specific needs. The ONDC code can further help consumers verify the authenticity of the product they are planning to buy. With the rise of counterfeit products in the market, the ONDC code can provide an additional layer of security and trust, ensuring that consumers are buying genuine products. As ONDC is democratising the way e-commerce industry works, consumers are given options to compare the prices Process flow in the implementation of ONDC The process flow for the implementation of ONDC on e-commerce platforms can be broadly divided into the following steps: to ensure that it meets the required standards. If there are any errors or inconsistencies, the e-commerce platform needs to correct them and resubmit the data. 1. Registration: The e-commerce platform needs to register with the ONDC system and obtain a unique identification number. 6. ONDC code generation: Once the product information is verified, the ONDC system generates a unique digital code for each product. 2. Integration: The e-commerce platform needs to integrate the ONDC code into its existing inventory management system. This can involve updating the software and hardware, training employees on the new system and ensuring that the data is accurate and up-to-date. 7. Product listing: The e-commerce platform lists the products on its website or app, with the ONDC code displayed prominently for each product. 8. Consumer access: Consumers can access the product information and verify the authenticity of the product by scanning the ONDC code using their mobile phones. 3. Product identification: The e-commerce platform needs to identify all the products in its inventory and assign a unique ONDC code to each product. This can involve scanning the product’s barcode or entering the product information manually. 9. Monitoring: The e-commerce platform needs to monitor the ONDC system regularly to ensure that the product information is accurate and up-to-date, and to address any issues that arise. 4. Data submission: The e-commerce platform needs to submit the product information to the ONDC system, including details such as the ‘manufacturer, batch number, date of manufacture, expiry date and other relevant details’. This data needs to be submitted in a standardised format specified by the ONDC system. ONDC is a proposed system in India that aims to create a standardised digital address code for all citizens and businesses in the country. The code would be used to facilitate the delivery of goods and services, including fashion products purchased through e-commerce platforms. The implementation of the ONDC system for e-commerce platforms involves registering with the system, integrating the code into the inventory management system, identifying and assigning unique codes to each product, submitting the product information to the ONDC system, generating ONDC codes, listing the products and monitoring the system regularly. 5. Verification: The ONDC system verifies the product information submitted by the e- commerce platform 16 AO India | May 2023

17. RETAIL RIGHT/ /NATIONAL Source: Statista, Financial Express, Redseer of different products on different e-commerce websites before making a purchase. By scanning the code, consumers can get access to information about the product’s price, features and specifications, enabling them to make an informed decision about the best product at best price within their budget. Furthermore, ONDC code can help consumers ensure that the products they are buying meet certain quality standards. By providing information about the manufacturer and date of manufacture, the ONDC code can help consumers make sure that they are buying products that are fresh and of high quality. Fashion companies’ reaction to ONDC The views of CEOs of fashion companies on ONDC will likely depend on a range of factors, including their company’s existing logistics infrastructure, the scale of their operations and their commitment to data security and privacy. Some CEOs may see the initiative as an opportunity to expand their business and reach new customers, while others may have reservations about the potential risks and challenges associated with implementing a new digital address system. and choice to customers across the country,” – Manish Tiwary, Country Manager of Amazon India. The e-commerce companies can benefit greatly from ONDC, as they can provide access to a larger customer base, reduce transaction costs, increase transparency, enhance security, and improve the customer experience. However, as ONDC grows, there are concerns as well! While the concept of ONDC has been met with some initial enthusiasm, there are also concerns about its implementation and potential impact on privacy and security. Some critics worry that the centralised nature of the system could lead to data breaches and other security risks. Here are some possible reactions (both positive and negative) that a fashion retailer may have towards ONDC implementation: Opportunities for expansion: ONDC could potentially create new opportunities for a fashion retailer to expand its customer base and reach new markets. By streamlining logistics and improving delivery times, ONDC could make it easier for the retailer to serve customers in previously underserved areas. Concerns about privacy and security: The retailer may have concerns about the potential impact of ONDC on consumer privacy and data security. As an e-commerce platform, the company is likely to hold a significant amount of sensitive customer data and would want to ensure that this data is adequately protected under ONDC. Potential challenges in implementation: The implementation of ONDC could potentially pose logistical and operational challenges for Myntra. For example, the company may need to make significant changes to its existing delivery infrastructure to integrate with the new system. ONDC could also create new opportunities for other e-commerce players to enter the market and compete with Myntra. As such, the company may need to stay vigilant and continue to innovate to maintain its market position. Overall, the retailer is likely to have a complex set of reactions to ONDC, balancing the potential benefits and challenges posed by the new system. Many public and private banks and financial institutions have contributed equity to ONDC till now. With an authorised capital of Rs.500 crore, ONDC already has commitments of Rs. 230 crore with a paid- up capital of Rs. 180 crore. “Amazon will integrate its logistics network and SmartCommerce, its platform, to digitise neighbourhood stores to Open Network for Digital Commerce. Amazon’s vision and commitment for India is closely aligned with ONDC’s objectives of digitally enabling small businesses and providing convenience May 2023 | AO India17

18. RETAIL RIGHT/ /NEWS www.apparelresources.com Overseas brands’ growing thrust on India S N I P S Fabindia Ltd, one of the leading retailers of artisan products and lifestyle products has appointed Rajeshwari Srinivasan as its CEO. Rajeshwari was previously working with Titan Company Ltd. Sabyasachi opens flagship store in Mumbai spread over 25,000 sq.ft. and housed in a majestic neo- classical heritage landmark building at Horniman Circle. One has seen the emergence of India as a lucrative market for global retail brands to bring their products in. Since Indian companies also work hard to promote these brands in India’s expanding retail market, they are interested in creating a market in India. For some brands, India is not only a growing retail market but also an important destination for sourcing like the French brand Celio which will increase its merchandise sourcing from India five times in the next two years and also its retail presence by adding 15-20 stores annually. India is already its second-biggest market in terms of stores after France. Currently, India contributes about 4 per cent of the retailer’s sourcing, having 70 standalone stores and 680 other outlets. Celio’s clothing is produced by third-party vendors in India. The size, organisation and mechanisation of the apparel manufacturing sector, as per the Founder and Global CEO Marc Grosman, make it easier to locate the type of production that his company requires. encapsulating both the summertime spirit and the zeitgeist of the younger generation. The clothing line features the brand’s distinctive diagonals, crosses and illustrative drawings on T-shirts, bottoms, dresses and accessories, giving youngsters a hip, street-smart look. He continued by saying that since a decade ago, India has seen a significant transformation and that the brand can now carry out all of its previous activities here that it earlier did in Europe. Indian retail brands RSVP by Nykaa Fashion, Chumbak and The Souled Store collaborate with Singapore Tourism Board and Little Black Book to launch ‘Singapore Inspired’ collection. One of the brands looking to take advantage of the growing Indian market is Les Petits, known as a luxury fashion brand for kids. It has onboarded the Italy-based Off-White brand. With this onboarding, Les Petits secures the exclusive rights to sell kidswear collection from the house of Off-White in India. Collaborations are also a way to bring brands into the Indian market. For the launch of its brand in India, BoohooMAN, one of the fastest-growing online men’s apparel retailers in the world, teamed up with Myntra, one of India’s top fashion and lifestyle websites. Leading Indian apparel retailer V-Mart is geared up to open more than 65 stores this year. It marks the brand’s presence in luxurious streetwear for the very first time which is in sync with the fashion of the youth as well as the season. The collection will be available in all the Les Petits stores as well as on the online platform. About 600 different streetwear outfits, including graphic T-shirts, hoodies, tracksuit bottoms and cargo joggers, will be available from the UK- based design label. The brand’s reasonably priced clothing is aimed at a generation of fashion-conscious men who are influenced by social media and focus on trends first, giving them the confidence to feel good every day. Flipkart has strengthened its fashion portfolio with the launch of the youth fashion brand ‘The Indian Garage Company’ on its platform. Off-White is responsible for fusing high fashion and streetwear. The brand’s aesthetic is a true representation of modern youth culture, 18 AO India | May 2023

19. RETAIL RIGHT/ /NEWS www.apparelresources.com Indian retailers opening new stores, adding private labels companies that sell stylish clothing in larger sizes, opined Venu Nair, Customer Care Associate, MD and CEO of the company. The company has also opened new stores in the past few days like the one in Jammu. This store is an important milestone for the company as it grows its presence across the country and delivers its unparalleled shopping experience to the people of Jammu. Another major brand that is looking to expand in the Indian market is Cantabil Retail India Ltd., one of India’s leading apparel manufacturers and retailers, which kicked off 2023 with the opening of 5 new exclusive retail outlets. With an increased focus on strengthening its retail presence, Cantabil aims to open 6-7 stores every month. In a statement, the company said that as part of its strategic vision to increase the retail portfolio, the new apparel and accessories stores have been opened in different states. As part of the upcoming growth plans in these markets, the company intends to make significant investments in Tier-2 and Tier-3 markets. For the new retail stores, the company is focusing on West Bengal, Bihar, Jharkhand, Bihar, Gujarat, Uttar Pradesh, Madhya Pradesh and several of the North Eastern states. Across the country, many retailers are not only increasing their retail presence by opening new stores, but are also adding more private labels. Leading retailer Shoppers Stop has launched U R You, a label for plus-sized men and women. The company’s move is in line with strengthening its private brands which are considered its key strategic pillar of growth. The release of U R You not only aligns with the goal of motivating clients to look beautiful and feel confident by enabling their lifestyle choices, but also with private brands being the strategic pillar of growth. There aren’t many May 2023 | AO India19

20. RETAIL RIGHT/ /INTERNATIONAL IT’S HIGH TIME TO LOOK AT EMERGING RETAIL MARKETS in the way the world does things and how the apparel industry has been affected. reaching £ 1.384 billion in January 2023. The US economy is now hitting the brakes due to the aggressive rate hike cycle pursued by the Federal Reserve, which it advocated over the last year or so to combat inflation and bring price stability. In March, the US central bank raised interest rates again, despite fears that the move could add to financial turmoil after a string of bank failures. It also warned that fallout from the bank failures may hurt economic growth in the months ahead. As per various reports, a potential economic slowdown is also starting to show up in retail sales growth, which fell 0.4 percent in February. While more and more data suggests that consumers are curtailing their spending, some Fed Presidents don’t seem to mind as they remain focused on bringing inflation down to its 2 percent target. As per National Retail Federation (NRF), The US and Europe have long held privileged positions as massive markets for garment consumption. They have been the traditional markets that have enjoyed a long period of being the regions where exporters and manufacturers have had their eyes on. The rapid growth of these markets combined with a host of lucrative opportunities have held the gaze of Indian apparel companies for a long while. Most recently, the amount of clothing imported into the UK in February 2023 was £ 1.294 billion (US $ 1.62 billion), an 11.51 per cent reduction from a total of £ 1.443 billion for the same month last year. According to the UK’s Office for National Statistics (ONS), clothing imports also fell month-over- month, The impact of Covid-19 in 2020 which caused major shifts in supply chains; the European markets getting affected with recession and inflation; and the Russia-Ukraine war in 2022 causing widespread fuel and energy problems in major European countries, leading to economic stress, worker strikes, increased energy prices and more has created a major paradigm shift in the apparel retail markets across the world. All these have led to a massive overhaul As per NRF, in March clothing and clothing accessory stores were down 1.7 per cent month over month seasonally adjusted and down 2.2 per cent unadjusted year over year 20 AO India | May 2023

21. RETAIL RIGHT/ /INTERNATIONAL in March, the clothing and clothing accessory stores were down 1.7 per cent month-over-month seasonally adjusted and down 2.2 per cent unadjusted year- over-year. The latest data on the employment front also shows signs that the consistently outperforming labour market over the past few years is starting to weaken due to the economic slowdown. The ADP jobs report on national employment showed 145,000 jobs were added in March, missing expectations by 65,000 and well below February’s reading of 261,000. Even the future scenario is not much upbeat as according to the minutes of the latest Federal Reserve Policy meeting which took place on 21st-22nd March, the US economy will likely fall into recession later this year due to the crisis in the banking sector. The collapse of Silicon Valley Bank and Signature Bank in the US has made a significant contribution to down sentiments. Slow growth on a year-on-year basis according to Eurostat, and lack of any good opportunities in these regions have created an atmosphere where emerging markets may take centre stage. Combined with a steady pace of growth in many south east Asian countries according to the Asian Development Bank and the GCC, these traditional markets have become somewhat less lucrative than they once were. Japan, Australia, South Korea, The Middle East (specifically the UAE and Saudi Arabia) and Malaysia are the new markets that should be looked at and explored as the markets of the future where there will be a host of opportunities and steady growth that the traditional markets are failing to achieve. Athleisure helps Japan’s market to grow Amongst the biggest emerging markets, Japan has made a name for itself as a large market with a lot of promise. The apparel market size of Japan is around US $ 88.80 billion in 2023 and is projected to grow further at a CAGR of 2.55 per cent for the next 4-5 years. The revenue generated in the market per person is approximately US $ 709.90 with a greater share placed on womenswear. The popularity of e-commerce for apparel, growing at 10.29 per cent with a projected market value of US $ 267 billion by 2027 as well as the push towards more athleisure-based clothing, has driven much of Japan’s growth post- pandemic. Customers in Japan have increasingly been driven towards online marketplaces for their apparel needs and it is a large part of the market share in the country with a user penetration of around 78.5 per cent according to Statista. Japan has a wealthy, well-educated population with three times the level of apparel sales per capita as China according to a Rolan Berger report. With customer population concentrated in the largest cities of Tokyo, Yokohama, Osaka, Nagoya and Sapporo, high sales per capita allows for the efficient distribution of products and stores. World Co. Ltd., Fast Retailing Co. Ltd. (owner of Uniqlo), Shimamura Co. Ltd., Wacoal Holdings Corp., Comme des Garçons, GU are amongst the major players operating in the region. The apparel market is set to recover by 2024, driven by the strong inflation and increased interest in casualwear such as tops and T-shirts and shorts and trousers according to GlobalData. Women’s apparel, a high point of Australia’s market Australia is another market that is often overlooked but still has a high value in the emerging market segment. Revenue in the Australian apparel market amounts to US $ 20.21 billion in 2023. The market is expected to grow annually by a CAGR of 2.04 per cent for 2023- 2027. The market’s largest segment is women’s apparel with a market volume of US $ 10.90 billion in 2023. In the apparel market, volume is expected to amount to 1.72 billion pieces by 2027. The Australian apparel market is expected to show a volume growth of 1.5 per cent in 2024. Online men’s clothing sales in Australia are expected to be around US $ 1.8 billion in 2023 with a growth rate of 5.5 per cent. Australia’s major players in this market are Cotton On Group, General Pants Co., The Just Group, Accent Group Ltd., and Sussan Corporation. The size of South Korea’s apparel market stands at US $ 38.05 billion in 2023 and is projected to grow at a CAGR of around 3.41 per cent The largest segment in Australia’s apparel market is women’s apparel with a market volume of US $ 10.90 billion in 2023. US $ 38.05 billion in 2023 US $ 10.90 billion in 2023 CAGR 3.27% CAGR 3.41% May 2023 | AO India21

22. RETAIL RIGHT/ /INTERNATIONAL focus on for the apparel industry as well. Saudi Arabia’s apparel revenue is around US $ 17 billion in 2023 and is projected to grow at a CAGR of 3.24 per cent. According to Kearney’s Global Retail Development Index, its e-commerce sector is thriving despite Saudi citizens’ bias towards cash payments. The country’s e-commerce sector is expected to reach US $ 21 billion in 2025. Some of the big players in Saudi Arabia are Redtag, Al Abdul Karim Co., Imtiaz Al Arabia Co., BRANDS International Ltd., and Ajlan & Brothers. UAE takes pride in its tourism industry and the luxury items it has in the region. Diversifying its revenue generation has also made it a growing destination for apparel and fashion. Revenue in the apparel market amounts to US $ 9.51 billion in 2023. The market is expected to grow annually by a CAGR of 3.64 per cent. Some of the biggest players in the UAE are Apparel Group (with brands like Calvin Klein, Levi’s and Tommy Hilfiger); Dubai Holding Group (representing brands like Zara, Stradivarius and Promod); Alshaya Group (with brands like H&M, American Eagle, Victoria’s Secret among others), Azadea Group (with brands like Mango and Massimo Dutti among others), and Chalhoub Group. Australian women’s apparel and men’s apparel markets are projected to develop at a CAGR of 3.27 per cent and 3.18 per cent respectively from 2021-2026. The share of revenue via online sales channels is projected to grow to 46 per cent by 2025. Sustainable fashion as a share of revenue is increasing in both men’s and women’s apparel. Consumers are increasingly concerned about climate change and the impact of ‘fast fashion’. Women’s sustainable fashion is expected to grow to 8.23 per cent by 2026. Men’s sustainable fashion is expected to grow to 6.8 per cent by 2026. South Korea’s apparel market driven by K-Pop and its stars South Korea is also another emerging market that has done quite well post- pandemic with a lot of brands going out and making their mark globally. The size of the market stands at US $ 38.05 billion in 2023 and is projected to grow at a CAGR of around 3.41 per cent for the next few years. By 2027, the number of customers is expected to be around 29.85 million. The growth in South Korea has been primarily driven by the K-Pop industry which, in the past few years, has grown to global prominence and its stars are looked at for their fashion sense and style. A focus on sustainable apparel production has also steered the growth of this market which also plays well with the focus in the EU and US. All in all, this is a market that would be an advantage to look at due to the tremendous growth and popularity it is seeing. The major players operating here are 87MM Inc., Acme de la vie Co., Ltd., Charms Co., Ltd, Ader Error. Online sales - key drivers of the markets in UAE and Saudi Arabia The Middle East has always been a large market for a variety of businesses and is also emerging as a great market to It’s predicted that 32 per cent of total market value will be generated via e-commerce and online sales in 2023, driven by the continuing spike in purchase frequency and average order value. Opportunity for Indian companies As the world is moving away from China and China+1 policy is being opted for by nearly every retailer and brand, it is high time for the Indian apparel industry to have more thrust in these emerging markets and increase their market share. It will also help them to have a balance in their market and clients. According to Kearney’s Global Retail Development Index, Saudi Arabia’s e-commerce sector is thriving despite Saudi citizens’ bias towards cash payments. 22 AO India | May 2023

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24. RETAIL RIGHT/ /NEWS www.apparelresources.com The US and UK display negative sentiments recently S N I P S Chinese search engine DejaWooo has positioned itself as the most comprehensive global search engine for pre-owned fashion which curates products based on search terms and filters, allowing users to compare and distinguish prices. Walmart Inc. has reached an agreement with WHP Global and Express Inc. to sell the menswear brand Bonobos for US $ 75 million. The US and UK, both leading markets for Indian apparel exporters, have displayed negative sentiments recently. National Retail Federation (NRF), an industry trade group in the US, has said that retail sales slowed in March, but spending was still higher than at the same time last year. As per NRF, clothing and clothing accessory stores were down 1.7 per cent month-over- month seasonally adjusted and down 2.2 per cent unadjusted year-over-year. While furniture and home furnishings stores were down 1.2 per cent month-over- month seasonally adjusted and down 1.9 per cent unadjusted year-over-year. Matthew Shay, President and CEO, NRF said, “Retail sales moderated in March after posting strong gains in the first two months of the year.” He further added that the continued easing of inflation and the overall strength of the job market and wages are keeping the fundamentals of the consumer economy strong and should support their ability to spend on household priorities through 2023. Retailers recognise the pressure on consumers from increased prices in services and experiences, and the impact of higher interest rates and are prioritising product mix, competitive pricing and convenience to help consumers stretch their budgets. The US Census Bureau has also said that the overall retail sales in March were down 1 per cent from February but up 2.9 per cent year-over-year. In February, sales were down 0.2 per cent month-over- month but up 5.9 per cent year-over- year. NRF’s calculation of retail sales – which excludes automobile dealers, gasoline stations and restaurants to focus on core retail - showed March was down 0.5 per cent from February but up 4.6 per cent unadjusted year-over-year. In February, sales were up 0.5 per cent month-over-month and up 6.7 per cent year-over- year. NRF’s numbers were up 6 per cent unadjusted year-over- year on a three-month moving average as of March. The results come as NRF is forecasting that 2023 retail sales will grow between 4 per cent and 6 per cent over 2022. On the other side, the amount of clothing imported into the UK in February 2023 was £ 1.294 billion (US $ 1.62 billion), an 11.51 per cent reduction from a total of £ 1.443 billion for the same month last year. According to the UK’s Office for National Statistics (ONS), clothing imports also fell month- over- month, reaching £ 1.384 billion in January 2023. Clothing imports into the nation totalled £ 21.256 billion (US $ 25.86 billion) in 2022, a 23.50 per cent rise over £ 17.034 billion in 2021. The UK imported £ 462 million worth of textile fabric in February 2023, down 4.94 per cent from £ 486 million in February 2022. Moreover, these imports declined month-over-month, decreasing from £ 469 million in January 2023. According to ONS data, imports of textile fabric totalled £ 6.359 billion between January and December 2022. Hai, the London- based womenswear label, is set to make a splash with its first UK pop-up store in Shoreditch’s trendy Calvert Avenue. Running from 22nd April to 31st May, the six-week pop-up will feature Hai’s latest Spring/Summer 2023 collection. Netflix and Lacoste partner to create clothing inspired by popular Netflix shows including ‘Bridgerton,’ ‘Stranger Things,’ and ‘Lupin’. Gucci opens its first Gucci Salon in Los Angeles. 24 AO India | May 2023

25. RETAIL RIGHT/ /NEWS www.apparelresources.com East Asian markets growing their 20s, irrespective of their income. The growing popularity among children — and their spendthrift parents — for luxury brands has driven up sales of kids’ designer clothes. Hermes Korea said that its net profit rose by 22.7 percent in 2022 from a year earlier amidst an ongoing trend of high-end fashion brands continuing their profit streak in South Korea. The South Korean arm of the French high-end fashion house reported a net income of 153.8 billion won (US $ 118.2 million) in 2022, compared to with 125.3 billion won in 2021, according to its regulatory filing. Luxury brands are scrambling to boost their appeal in the Korean market, as evidenced by Louis Vuitton’s upcoming launch of its 2023 pre-Fall collection which is scheduled to take place on 29th April in Seoul, marking the first-ever fashion show to be held by the brand in Korea. Japan-based Fast Retailing Co., the parent company of Uniqlo, has also seen a rise in revenues from China. According to the average of seven analyst projections from Refinitiv, Fast Retailing’s operating profit for the three months ending in February, is anticipated to increase 30 per cent to 91 billion yen (US $ 682 million). Apparel and fashion companies in Asia have been doing quite well for some time with revenues and popularity increasing by leaps and bounds. Several fashion brands as well as retail platforms have increased their revenues and, in some cases, outpaced their foreign rivals. Musinsa, a South Korean apparel giant in the online fashion sector, saw a 54 per cent increase in yearly revenue in 2022 compared to the previous year, thanks to strong marketing that targeted both online and offline customers in their 20s and 30s. The multimillion online retailer of clothing became the eighth unicorn in South Korea in 2019—a firm that achieved US $ 1 billion value without being registered on the stock market. The business determined that stronger marketing that targets both online and offline clients is a contributing factor in the improved sales. Musinsa has subsidiaries, such as 29CM, an online fashion item shopping mall, which recently built a few offline stores throughout the nation, in addition to its two main offline stores. Talking about South Korean companies, Cowell Fashion Company which focuses on manufacturing and licensing apparel products for established global brands across product areas including sportswear, accessories and underwear, signed an agreement with UK’s Superdry to transfer the assets of the UK company in Asia- Pacific to the firm for US $ 50 million. Starting from its home market and extending to other regional markets, Cowell will own and use the Superdry brand in Asia-Pacific, including China. Both companies will work together to develop products relevant to those markets. With this sale, the company can focus on growing its brand and increasing sales in its more established territories where it has the strongest expertise, said Superdry. Korea is also doing well in the luxury segment. In 2022, Korea’s per capita luxury consumption was as high as US $ 325, the highest figure in the world, according to a report by Morgan Stanley. Luxury brand items, which were once thought to be exclusively for affluent middle-aged individuals, are now being coveted by young Koreans, particularly those in May 2023 | AO India25

26. EXPERT SPEAKS INCREASED TRUST AND SMALL STEPS CAN ADD VALUE TO COLLABORATIVE EFFORTS OF NGOs AND THE INDUSTRY with the workers on the shopfloor and mid-level management. With a variety of initiatives covering health issues and financial literacy of workers, women’s safety and empowerment of workers’ families and many more such areas, NGOs are working in collaboration with the apparel industry. By their few small but significant steps, more workers and their families can get benefits which ultimately help the industry also. Imagine if any NGO, supported by brands and garment factories, organises a free computer centre, personality development and coaching centre, crèche with nutrition care, sewing training centre and a variety of health camps on regular basis and all this for the families of garment factories’ workers. Such workers and their families are bound to have an overall positive impact. Besides, NGOs also work directly for workers with a worker helpline, have regular sessions on soft skill training, workshop on sensitive issues like POSH and women’s safety, ensuring that advantages of various government schemes reach workers etc. Doing all such activities for the last 15 years in Delhi- NCR, I have observed massive change in the workers’ and their families’ life but there is still a lot of scope in this direction as lakhs of workers are not able to be part of any such initiatives or activities. To spread the benefits of these welfare initiatives to the maximum number of workers, there are a few steps required from both sides- the NGOs and the industry. To top it all, what matters the most is trust building. From the factory or the company’s side, the HR department can play a crucial role in this regard as HR is at the core of the issues being faced by the workers, organisation and the efforts of NGOs to solve such issues. Any kind of collaboration should not just take place because of the involvement of international or national buyers, but the areas of improvement should rather include identifying and aligning with the vision and working of the NGO and the factory/company. One may have issues with providing monetary contributions but there are many other options where NGOs can be supported. Arranging doctors and medicines for health camps is a good idea as health requires foremost attention. Similarly, space can be provided for such activities, especially in areas like Delhi- NCR where workers’ families are living just a few kilometres away from the factories. And there are more initiatives, where without any kind of direct or indirect expenses, significant support can be given in the form of distributing factories’ leftover garments, samples or fabric which will not be used further. Garment factories can also offer good quality uniforms to the children of workers going to schools. The organisation can assign one or two of its professionals to support NGOs with any kind of work directly related to the workers. Teachers can be provided with various types of coaching and training for workers’ kids. These small steps can have awesome results, but the need is to do them consistently. I have observed that after a few sessions or some improvement, training and welfare don’t remain the focus area for factories and this derails the entire initiative or process. VK Jha Founder, AIDER VK Jha, Founder, AIDER has experience of working on a senior level in Indian and Bangladeshi garment factories. For the last 15 years, he has been successfully running AIDER NGO in Delhi- NCR. AIDER is completely dedicated to the upliftment of garment factory workers and their families. In collaboration with some international brands and reputed garment factories, AIDER is supporting a huge workforce. NGOs are important stakeholders of the apparel business, be it in manufacturing or retail, and especially pro-industry NGOs which work primarily for the growth of the industry, for the welfare of the staff of companies, factories and the community, have a more significant role. With the help of NGOs, the industry can achieve more loyalty of its blue-collar workforce, better understanding and coordination 26 AO India | May 2023

27. COVER STORY COVER STORY GLOBAL DENIM BRANDS ENJOYING GROWTH IN INDIA product assortment that caters to the local consumer. development and sourcing from India. Nidhi Dua recently joined as Senior Director, Product Development and Sourcing, South Asia at Levi Strauss (India) Pvt. Ltd. Prior to this, she was with M&S as Head of India and Sri Lanka Region. Similarly, US-based Lee and Wrangler (Kontoor Brands) are also on a growth track in India. Ace Turtle has long-term licenses for Lee and Wrangler in India and select South Asian markets. It has grown by about 100 per cent in FY ’23 and planning on sustaining growth close to 100 per cent in the current fiscal year as well. The brand has a clear focus on the Indian middle-class as Nitin Chhabra, CEO, Ace Turtle believes that this segment represents a significant market opportunity. “As of now, Ace Turtle operates 31 stores for Lee in India and is planning to add an additional 50 stores during the current financial year. Similarly, we have strong growth plans for Wrangler as well,” he further shared. Ace Turtle has also launched Lee®’s first Levi’s, Lee, Wrangler, Celio are some of the well-known global brands known for their denim products but another common thread among these brands is their growing footprint in India. All of these and some other brands are not only strongly present in India but also geared up for growth in the Indian market. They are increasing their store count in India, opening flagship stores, constantly offering more and more range of products. And all this underlines the growing thrust of the Indian market for global denim brands. In 2022 financial year, US-based global apparel brand Levi’s® reported a 58 per cent year-on-year net sales increase to Rs. 1,154 crore in wholesale sales to franchise partners. Having around 400 stores in India, just a few days back, it opened Asia’s biggest store in Bengaluru as the brand is focused on its direct-to- consumer strategy and expansion focus. With this store, Levi’s® continues to elevate brand experience to consumers through digital innovation, unique shopper experiences and an unmatched Amisha Jain, MD and SVP, South Asia, Middle East and Africa at Levi Strauss & Co., highlights that India, in particular, is a priority growth market for Levi Strauss & Co as we look to scale up our investments in Asia. The opening of this store signifies our commitment towards offering quality and innovation in latest fashion to consumers in both India and the wider Asia region. It is worth mentioning here that the brand is available in more than 110 countries. The denim giant is also strengthening its senior team with focus on product Pepe Jeans has grown in India at 50 per cent CAGR for the last two years and is looking to growing at 30 per cent CAGR for the next three years. May 2023 | AO India27

28. COVER STORY flagship store recently in Bengaluru. Not only are US-based brands enjoying growth in India but also brands like Celio from France are very optimistic about their growth in India. In terms of overall offering, Celio includes a reasonable size of jeans and India is its second-biggest market in terms of stores after France. Moving forward, it will have more focus on India and that too on retail as well as sourcing front. The retailer will increase its merchandise sourcing from India five times in the next two years and will also increase its retail presence by adding 15- 20 stores annually. As of now, Celio has 70 standalone stores and 680 point-of-sale centres in India. Marc Grosman, Founder and Global CEO of the company says that retail in India is much more organised, consumers are highly educated and the demand for fashion has increased a lot. Amisha Jain Nitin Chhabra CEO, Ace Turtle MD and SVP, South Asia, Middle East and Africa, Levi Strauss & Co. with self-expression being key for today’s consumers. In addition, customers can further customise their Levi’s® apparel through embroidery, patches, pins and more. Sharing about initiatives to understand consumers, Nitin says that Ace Turtle has an online channel, where the data obviously comes back to it. That’s how the model was designed and this data then goes to the design and manufacturing unit. So, the entire supply chain and the front-end are linked with consumer behaviour. As per Nitin, this model has worked out better than he had envisaged and the brand is doing better now than when it was at its peak. Ace Turtle is experimenting with a wider assortment of products that target consumers across mid-to-high-level price points. This year, it is also adding new products at both the top and lower ends of the price line to expand the pricing assortment. It has also incorporated innovative in- store features, such as Electronic Shelf Labels and Smart Mirrors to enhance the shopping experience for customers and provide personalised recommendations. “When it comes to the global denim market, industry experts predict that it will reach US $ 87.4 billion by 2027, with an expected CAGR of 4.7 per cent. Despite the growth rate not meeting expectations, the Indian denim sector stands out with an average CAGR of 8 per cent to 9 per cent in recent years, projecting a potential value of Rs. 91,894 crore by 2028. Thus the strong demand in India will support the future growth of the denim industry,” concludes Nitin. “With consumer behaviour shifting in the ever-changing retail landscape, we at Levi’s® continue to prioritise how we deliver our iconic products and an impactful brand experience, especially to our growing base of young, savvy consumers in India and across Asia,” says Amisha. The retailer also plans to take product designs and know-how from India to other countries. It is taking jeans from India, a product that is developed to endure harsh weather. “India, with its warm weather, developed a type of jeans which is very light. This is an idea from India that we are taking into Europe, It’s a clear example of innovation coming from India going to Europe,” says Marc. Global denim giants serving the Indian consumers in best possible way As a strategy to target the youth, Levi’s hired Deepika Padukone as the brand’s global ambassador but there are many other steps Levi’s and other jeans brands are taking to increase their market shares. Indeed, overseas brands are on their toes to serve the Indian consumers best be it in terms of the product or store experience and any other allied aspects. At the newly opened Levi’s store, there is the Levi’s® Tailor Shop helmed by skilled tailoring professionals, which seeks to give consumers an opportunity to personalise their purchases especially One of the reasons that global brands are having more thrust on India is that the western world is a little tight with higher inflation and issues like high energy prices etc., so they are having a prolonged focus on India, its consumers, the economy as well as apparel growth. And they are expecting good growth in India just like Levi’s which believes in continuing to grow in low double digits, which is really remarkable when things are slowing down in the western world 28 AO India | May 2023

29. COVER STORY COVER STORY LONG TERM VISION HELPING INDIAN DENIM BRANDS TO GROW Nagar (Delhi)-based Sparky is a good example. The brand has a target to achieve a turnover of Rs. 1000 crore within three years. Having five factories in Noida, the brand didn’t disclose its existing turnover but claims its presence almost across India with about 7,000 stores and a large number of distributors. Along with the reach, the brand claims that its core focus on quality at affordable price is its strength. Denim is like a commodity as well as a fashion-driven lifestyle product for all genders and various age groups. And most of the Indian brands dealing in this segment are optimistic about their growth as they are not much impacted by whatever short-term negative developments are there since they plan for the long term. Indian brands are working on strategies like maintaining high quality, aggressive marketing, rapid penetration across the country to maximise reach and being more environment-friendly. Some of the Indian brands have observed very good growth and thanks to their massive reach in the market, they are sure to grow well. Gandhi The Indian domestic market for denim has been maintaining an average CAGR of 8-9 per cent for a few years and is expected to reach US $ 12.27 billion by 2028. The global market for jeans will reach US $ 87.4 billion by 2027 after being revised from US $ 63.5 billion in 2020, growing at a CAGR of 4.7 per cent from 2020 to 2027 (Source: Research and Markets) Mumbai-based Kewal Kiran Clothing Limited (KKCL), which owns the jeans brand Killer, also has a good reach as it has a presence in 25 states and 209 cities across India. Currently having 400+ retail stores spread across May 2023 | AO India29

30. COVER STORY Agreeing with this, Manjula Gandhi, Chief Product Officer, Numero Uno says that consumer product centricity is altering after the pandemic and Numero Uno is evolving its production, marketing and communication strategies. Trigger Apparels (KG Denim) is one of the leading brands from Coimbatore which had a good beginning during 2022-23 with a drop towards the end of the year owing to general dynamics. However, it believes that good practices would help the brand in the longer run. “We expect the year 2023-24 to continue the same way with the festival demands expected to be picking up,” said S Kalyanasundaram, VP, Trigger Apparels. Indian brands increasing thrust on sustainability  Of late, Indian denim brands are introducing sustainable clothing in their range, with BCI and Organic certification to allure customers, especially the young generation and increase the sustainable thrust across India. Trigger Apparels is always engaged in new developments, especially with innovative finishes. Currently, the brand is working on sustainable fashion as the same is just evolving. “We see a major transformation as denim is being increasingly accepted by the young and old alike. With sustainable fashion gaining ground, we look forward to a shift in the industry,” says S Kalyanasundaram. It can be mentioned here that most of the leading Indian denim brands have their own manufacturing also which gives them better control over quality, cost and sustainable practices. Numero Uno has state-of-the-art laundry and the brand’s tech-first approach helped adopt sustainable practices like ozone fading while making all sorts of trendy washes. The brand doesn’t use bleach and uses mineral dyes that induce natural colours, along with green chemicals and washing agents. the country, it is also available in a large number of multi-brand outlets and large-format stores. they will work with long-term planning. It will help the entire Indian denim market. “Looking at the overall inflation and cost of manufacturing, the majority of jeans and garment brands have not raised the price accordingly, at the same time, thrust on innovations, designs and newer types of products is the prime concern for nearly all, so factors like high inflation and any other challenge will not impact the market for long term,” Kewalchand explains. Spykar, a leading Indian denim brand, is also geared up for aggressive marketing as in the coming months, the brand will have a lot of affiliate marketing besides social media. It is going to become even stronger and bullish about creating on- ground properties and IPs for the brand. It will have a 360-degree campaign built around certain properties which the brand can associate with. The company has recently opened its stores in Berhampur, Ahmedabad and Ludhiana. Easy wearability and high durability are two factors ensuring value for money, which is very important in the Indian market and denim delivers 100 per cent on these fronts. At the same time, the growing acceptance of denim in offices and professional spaces is also a reason that denim brands are assured of the demand. As a part of its long-term plan and aggressive marketing strategy, it recently became an official partner of the Indian cricket team. This initiative helped the company to increase recall value from cricket lovers across age groups. “Since 1989, we are working with a long term vision, be it our aggressive marketing strategy, strong focus on quality. So we are not much bothered or impacted by short-term ups and downs of the market or demand. Overall we are highly optimistic about good growth,” says Kewalchand Jain, CMD of the company talking to AO. He further adds that as the market follows leading and mature brands, in the coming days, marketing initiatives of other brands will also increase and For Spring/Summer ’23 Collection, Mumbai- based Mufti has come up with Flyweight Jeans - comfortable, lightweight, knitted in addition to the premium denim DeLuxe line. Offered in super slim and ankle-length fits, these work well in the Indian weather and are quick to dry while using very less water and energy to wash. 30 AO India | May 2023

31. COVER STORY INCREASED THRUST ON PRODUCT DEVELOPMENT IS THE FOCUS OF DENIM PLAYERS  despite their firm commitment to quality because of these types of players. He further adds that they have installed a PET bottle recycling plant in the name of Kannapiran Polymers Ltd., to recycle used plastic bottles and plastic containers, thus leading to CO2 saving of about 15 million kilos or equivalent to 90,000 trees planted. In recent months, Indian denim fabric manufacturers are continuously facing short-term and long-term challenges due to uncertain overseas markets, overall export of denim fabric being impacted negatively and this has forced mills to focus more on the domestic market. However, with a large number of denim fabric manufacturers, the demand for denim has not grown proportionately in the domestic market, so sentiments are not much upbeat for mills. Emerging unorganised players are another cause of worry but the interesting aspect is that in long term, the companies are optimistic about increasing their market share with growing thrust on product development. Competition tight in domestic market   In various textile clusters, there is a growing number of such firms that have few looms but have started producing denim fabric. They outsource the processing of fabric from unorganised players like themselves. Though the majority of these kinds of firms have some quality issues, they can sell at comparatively low prices. Their clients are mainly garment manufacturers in the domestic market that cater to Tier-3 and Tier-4 cities or rural areas. These unorganised players are cost-effective and also provide quality products which has added to the woes of the highly competitive domestic market. Agreeing with this, Piyush Chandarana, Business Head of Vishal Denim, an Ahmedabad-based vertical integrated company, states that most of the organised players can’t reduce the price Thrust on more offerings Established players to emerging mills, one thing that runs common for all the denim manufacturers is the emphasis on product development as despite the cost factor, more products and newer offerings always attract everyone. The company’s latest Higg FEM score of 87 per cent asserts its relentless efforts towards sustainability. Jindal Worldwide recently launched Denim Eye, a denim collection inspired by the latest trends in the fashion industry and it was developed based on feedback from fashion students from top Indian institutes who spotted real-time denim trends in the country. For companies like KG Fabriks, apart from product development, thrust on sustainability is a continuous process. “In our continuous endeavour towards sustainability, we further reduced the usage of water in our denim fabric production. We use a maximum of 6 litres to make a metre of denim. More than 60 per cent of the energy needed for fabric processing is derived from renewable energy resources like wind and solar. With our i-Wash and i-Top proprietary technologies, we see more than 80 per cent dye uptake happen in yarn,” says Srihari Balakrishnan, MD of the company. Vishal Denim recently increased its thrust on denim for womenswear, added more colours and going forward is geared up to offer pre-shrink denim fabric. “Shrinkage is an issue in denim fabric and as an effort to overcome that, we will use fabric which has no shrinkage and rather than opting for traditional washing which requires water, stones or sand to wash the jeans, Srihari Balakrishnan MD, KG Fabriks Sarthak Shah Head-Sales, Future Textile Manufacturing Co (Bright Denim) May 2023 | AO India31

32. COVER STORY laser wash can serve the purpose,” states Piyush. Unlike many other denim mills, Vishal Denim, also has a wider-width loom which is an added advantage for the company. Premo Denim, Sonipat has also increased its product development and now offers almost 20 designs every month which is almost double than its earlier offerings. “The overall demand had not grown much but as of now we have more offerings for the clients, so they are buying a little more,” says Yash. Future Textile Manufacturing Co (Bright Denim) is also working to improve colour strength. Sarthak Shah, Head-Sales of the company tells, “Normally after a few washes, colour gets dull and whiteness emerges in indigo, as a solution we have given a base of brown and yellow which increases colour brightness.” The company has also enhanced its offering by adding fabric of 9 and 10 ounces for Tier-2 and Tier-3 cities where demand is more for heavy fabric. Using Ultra Lycra is another step taken by the company to improve flexibility in the fabric. Though the increased efforts on product development have resulted in more costing, but to grab the market share, the companies are managing this cost. As far as blends are concerned, multi- fibres like Tencel and linen blended denim are in trend now. The majority of the companies are using blends to overcome the increased cost and normally blends like 80:20 (cotton: polyester) prevail in the market. But at the same time, companies like Bright Denim are offering only 100 per cent cotton-based denim fabric as Sarthak is of the view, “Irrespective of market trend of blends, we want to stick to our strategy of working in only 100 per cent cotton and we will continue with the same.” Reasons of hope for further growth  Despite various challenges, as usual, companies are hopeful for further growth and they have a few interesting reasons too. Yash Singh, MD, Premo Denim, who entered into denim fabric manufacturing just three years ago believes that after a long time, now the major issue seems to have settled down, be it high cotton price, inflation in the Indian market as well as overseas, so in the coming months, there should be good demand of denim. Piyush Chandarana adds that India’s competitor countries in the denim segment like Bangladesh and Pakistan are facing dollar crisis and companies in these countries can’t open Letters of Credit (LC) and once the global demand rises, India should definitely get advantage of this. It is worth mentioning here there are various reports claiming that Bangladesh has seen a decrease in its foreign exchange reserves and its local currency Taka has depreciated against the dollar by over 20 per cent in the last six-seven months. Such reasons are creating high hopes for denim manufacturers and these include market-specific as well as social reasons too. Due to the overall change in the social scenario and the growing impact of social media now in India, people in the age group of 35 to 40+ in smaller cities are also using more denim which was not there earlier. It is a new customer base for the denim segment. To give more options to consumers, denim fabric is now being used more in products like leggings and sportswear as denim is more comfortable due to its high stretchability. Leading Indian denim mills and their capacity SN Company Name 1 Jindal Worldwide 2 Arvind 3 Vishal Fabrics 4 Aarvee Denims and Exports 5 Partap Spintex 6 Nandan Denim (Chiripal Group) 60 7 Etco Denim 8 Raymond UCO Denim 9 Bhaskar Industries 10 Oswal Denims 11 Sudarshan Jeans 12 Suryalakshmi Cotton Mills 13 Mahak Synthetic Mills 14 Mafatlal Industries 15 Modern Denim 16 Ginni International 17 Ultra Denim 18 LNJ Denim 19 Soma Textiles & Industries 20 Century Textile and Industries 21 Kanchan India 22 Malwa Industries 23 R & B Denims 24 Anubha Industries 25 Rainbow Denim 26 Indigo Denim 27 Signet Denim 28 Lodz Denim 29 JRD Denims 30 Sri Rajlaxmi Denim 31 KG Denim 32 Super Gold Suitings 33 Blue Blends (India) 34 Future Textile Manufacturing 35 Rainbow Denim 36 Vinod Denim 37 Siddhi Weaves 38 Premo Denim Inc 39 KG Fabriks Limited 40 Ashima Group 41 Sangam Group 42 Splenora Textures 43 Bright Denim Capacity (million metres per annum) 140 120 100 85 80 50 50 44 40 40 40 32 30 30 27 26 25 24 21 20 20 20 20 20 20 20 20 20 20 19 19 18 18 18 18 14 10 12 11 8 6 6 Yash Singh MD, Premo Denim Source: Market and Apparel Resources 32 AO India | May 2023

33. COVER STORY INNOVATIVE PRODUCT DEVELOPMENT DRIVING GROWTH FOR TRIMS COMPANIES Known for its constant new developments, Manohar Filaments works for most premium denim brands as well as for the many top manufacturers of jeans and allied denim products in India as well as Bangladesh. The company also has its manufacturing operations in Bangladesh. Mumbai-based Fashion Accessories India (RCBC Group), is another leading company in trims and its 60 per cent of business is mainly from denim brands/ companies. Some of the denim brands that it works with are UCB, Pepe Jeans, Wrangler, Killer Jeans, along with in-house brands of retail giants such as Reliance, Westside, Aditya Birla, Lifestyle and Shopper’s Stop. Developments at the core  Apart from following material exploration, seasonal trends and forecasts, various trims companies have their focus on offering new products consistently. “As a company, we are always looking for innovative solutions and currently, we are working on a collection made from entirely sustainable fibres and a combination of recyclable and biodegradable products, which are also pocket-friendly for most of our partners,” says Amit Jain, CEO, Manohar Filaments. He further adds, “We always have a denim-inspired mood board and collection card, and this time, we are focused on denim finishes and the interplay of design with fabric and finishing techniques.” Sharman Udyog has a specific collection for the denim category which lets the designers imagine and create better. These collections are made with an understanding of trends and new materials which are procured as per the category demands. “We not only help brands with thematic approach but also work in coordination with the designers to guide them better with interesting placements of existing and new qualities,” says Piyush. Fashion Accessories India‘s latest collection is called BOLD by Fashion Accessories. It is a burst of colour, shine and ultimately positivity – a collection where it has stayed completely away from safe choices. “We have designed a collection with call- to-action messages – designed especially for sustainable collections, colour combinations that pop such as pairing of bright oranges with sky blues and purples, a balance of earthy tones with neons and a focus on Pantone’s shade of 2024 – Apricot Crush,” Nishi Vora, Director of the company informs. A lot of shiny and metallic infusions throughout the range, from coated finishes on metal trims that have moved away from the standard matte to shinier lacquer coatings and epoxy coatings, to backpatches with glossy prints, multicolour metallic foils and gold and rust sheens highlight the brand name. The use of recycled and sustainable materials and processes throughout the range is another significant aspect. “We truly believe that trims, while perceived to be a very small element on the garment, actually voice the DNA of a brand and its collection to the customer,” she says. The growth of global and Indian brands in the Indian retail landscape and growing denim-based sourcing from India is a major push for Indian trims manufacturers and they are equally geared up to increase their market share. Trims companies have more thrust on product development, sustainable raw material and better coordination with their clients. In discussion with trims giants Manohar Filaments, Sharman Udyog and Fashion Accessories India, AO explores how they have specific thrust on the denim segment owing to its growth potential and what new they are offering to the denim industry. Piyush Jain, Director, Sharman Udyog says, “As we can see, there is a trend of wearing more smart casuals at work or for meetings which is increasing the growth of this sector by 2 to 3 per cent annually. In the years to come, we would definitely see denim sector being equivalent to knit or woven sector.” He further adds that for him, denim brands are equally important as a shirt or a knit brand. “All products that we do are used in all denim categories, main product categories being PU patches, printed and woven labels and badges, rigid and knit tapes and wash-cares. Almost all the brands we work with have a denim division like, Spykar, Killer, Diesel, Allen Solley, Louis Philippe, Flying Machine, USPA, Arrow Jeans, Peter England, True Religion, Gap, Mufti, Pepe, Indian Terrain, John Player, Banana Republic, Parks, French connection, Vera Moda, Balmain, DKNY, Weird fish, Tom Tailor,” confirms Piyush. May 2023 | AO India33

34. COVER STORY COVER STORY AFFORDABLE AUTOMATION IS THE KEY The use of the latest technology was inevitable for many years and now with the constantly growing thrust on quality, cost control, innovation and speedy production and less dependency on workers, automation is the only tool. And the interesting aspect is that not only organised manufacturers of jeans or allied denim products have a strong focus on automation, even the unorganised or comparatively small manufacturers also have a tilt towards adopting automation. Affordable automation and efforts of technology suppliers have helped them to become more efficient. Vibemac and E.H. Turel and Company are two leading names having a strong hold on machines for technology suppliers. Being a market leader in jeans manufacturing machines, Vibemac enjoys good market share and is also assured about further growth as Veeru Maknur, Country Manager- India of the company says that in the Indian market, some of the top jeans producers, especially big exporters, have already adopted advanced technology machines from Vibemac Italy. Slowly but steadily, domestic jeans producers have also started adopting advanced technology machines from Vibemac Italy and China depending upon brands and budget. In fact affordable automation is a key mantra for jeans manufacturers and machine companies such as E.H. Turel and Company which offers a complete solution to jeans manufacturers with high-quality branded machines for various operations. It is providing economical solutions for Tier-2 and Tier-3 cities as well. The company has been able to change the mindset of machine users and convince them that automation is not expensive. “Apart from cutting room, there is affordable automation for stitching, finishing and we have success stories Neville Turel Veeru Maknur Country Manager- India, Vibemac Director, E.H. Turel & Company where small to mid-level players have invested in the latest machines and not only increased production, but also reduced the cost comparatively. It may take time but automation helped the jeans manufacturing business become successful irrespective of the scale of operations,” says Neville Turel, Director of the company who is the third generation of the business. Due to subsidies and benefits of various states and Central Government, small and medium-level jeans manufacturers are also motivated to invest in latest machines. Veeru feels that apart from Bengaluru, Mumbai, Surat and Ahmedabad have grown faster in the past one year and there are a few specific reasons for the same. With Gujarat Government’s beneficial schemes for the apparel industry and local availability to support denim manufacturing in the state, Ahmedabad is a focused denim hub for fabric as well as jeans for decades. So far considering the investment in advanced technology to produce jeans, the growth is slow and steady, but machine companies are also upbeat that with the new textile parks, overall growing investment and sustainable initiatives like improving washing facilities and treatment plants, jeans production is all set for good growth in domestic market as well as exports. And the full support of machine companies is also a motivation for jeans manufacturers moving towards automation. Agreeing with this, Veeru says that we at Jack Group, Vibemac team from Italy and China are working hard to provide the new investors total solutions A to Z starting from fabric warehouse to packing goods section with the latest automation and smart, intelligent factory solutions with fully automated systems in every department, and having support of the production consultancy, our experts are going to help customers around India in a big way. “In the last two years, we have seen steady growth and investment from local/ domestic producers in India. This is majorly due to the new collaboration and partnership with Jack Group - Vibemac Machines are supplied in 3 x Categories V line from Italy for premium customers, S line from Vibemac China for domestic customers with lower prices to suit their budgets and B line machines from Vibemac China to complete the jeans production line,” he says. Neville believes that as jeans are now for daily use, be it office or any special occasion, around 12 to 15 per cent growth with regard to denim-related machines is there for his company. 34 AO India | May 2023

35. COVER STORY COVER STORY FOUR THEMES DEFINING DENIM FOR SPRING/SUMMER 2024 The Kingpins NY fair held in Pier 36, Manhattan has given much inspiration and insight into the denim trends for the upcoming Spring/Summer 2024 season with Denim Dudes presenting key directions for the season. Characterised with a distinct retro feel, the themes are divided into four distinct stories that feature different moods, textile suggestions, details and colour palettes for easy understanding. The first, ‘XS’, focuses on bold and edgy self- expression using acid-bright colours and the greencast dyeing process. The second theme, ‘Burned Out’, takes a darker turn with a protective, layered style in shades of black, grey and blue, featuring mineral washes and upcycling, whilst ‘The Last Tourist’ showcases denim adorned with souvenir patches, Indian block printing, expressive laundering, hole punching and hand adornments. The fourth theme, ‘Ethos’, is the more commercially viable theme amongst all four themes of the season and explores practical and relaxed workwear with themes of durability, peasant styling and humble Americana, including lightweight raw denim in sun- faded hues, sand and stone-inspired washes and natural overdyes. To conclude, the trends that will be a defining factor in the coming season include bold colours and greencast dyeing, upcycling processes, adorned denim, stone- inspired washes and sun-faded hues with natural overdyes. Read on to discover each theme in detail. looks at home, bypassing traditional fashion gatekeepers. The trend channels the indie sleaze mood of club culture in the early 2000s, characterised by starlets stumbling out of Hollywood nightclubs and London cabs. Influential advocates of this style include Thought We Friends, who use intensive denim treatments, and Space Paradiso, who create artful spraying and airbrushing effects. The trend urges one to revisit their closet to unearth pieces from brands such as True Religion, Guess, D & G and Von Dutch. The XS theme is a youthful and unconventional interpretation of the Noughties trend that places focus on provocative and extravagant self-expression, using vibrant colours and a green-tinted dyeing process called ‘greencast’. The process involves dyeing the garment with green sulfur before indigo is added to create a bluish-green hue. The rise of social media and individualism has led to a group of style-savvy individuals, known as ‘bedroom makers’ who use simple materials to create impactful XS May 2023 | AO India35

36. COVER STORY continue to indulge in materialistic pursuits, like buying shoes or in this case, jeans. While the XS story celebrates the idea of Nero playing the fiddle while Rome burns, the Burned Out storyline adopts a more serious and less lighthearted approach. It is a response to the bleak times the world is currently experiencing, reflecting the growing dissatisfaction with capitalist values and the glorification of productivity and hustle culture, as studies reveal a decline in happiness in both the US and UK. The vibe of Burned Out is sombre, with layers of casual clothing in a limited colour palette of blacks, infused with blues and greys. Mineral washes are used to create a dirty effect, while upcycling has become a staple. Delicate, high-end denim pieces from Paradoxe Paris are contrasted with muted comfort items from brands like Fear of God, reminiscent of the ’90s Helmut Lang's tonal and columnar layering. BURNED OUT Even though the world is currently in turmoil, people showcases the heritage of countries worldwide like never before. The renewed interest in travel post-Covid has brought about a heightened cultural sensitivity resulting in more authentic storytelling. In this space, brands such as Kardo from New Delhi, Bode from NYC, England’s SS Daly and Indian-Canadian Norblack Norwhite have all made a mark. Additionally, a Parisian collective has taken over the once-defunct West African airline, Air Afrique, committed to reintroducing the world to the airline’s pan- African philosophy that also touched fashion, art and film. The new preppy look is redefining elite, European pursuits such as golf to challenge the status quo. Souvenir patches on denim are a popular trend, along with Indian block printing, hole-punched denim, expressive laundering and hand adornments. THE LAST TOURIST Get ready for a cultural explosion in fashion that of this decision are yet to be fully realised. This quest for a new equilibrium is reflected in practical and relaxed workwear with themes of durability, peasant styling and humble Americana. Ethos emerges as the most commercially-oriented story of the four themes and highlights the resurgence of authentic and holistic garment production that aligns with spirituality and nature, which early capitalism and the industrial age had turned us against. The clothing features lightweight raw denim in sun- faded hues, sand and stone- inspired washes, and natural overdyes. Denim is paired with crumpled jacquards, rustic sheers, lived-in dobbies, hemps and linen blends for a comfortable yet stylish look. Patagonia Founder, Yvon Chouinard's decision to donate his company to combat climate change is a significant change to capitalism, and the effects ETHOS 36 AO India | May 2023

37. BUYING & SOURCING EVOLVING BUYING HOUSE PRACTICES: DIGITALISATION MAKES SPACE! transparent. Similarly use of technology in production planning tools to schedule, coordinate and check quality of the product manufacturers ensures timely delivery. Increased focus on sustainability, ethics and transparency in the supply chain Consumers are becoming more conscious of the environmental and social impact of their purchasing decisions, leading fashion companies to utilise various technology tools to ensure that their products are sustainably and ethically sourced. One important technology being used is supply chain management software, which allows companies to track products through the supply chain and identify potential issues that could impact sustainability and ethical sourcing practices. Several Indian companies are creating blockchain-enabled software solutions for supply chain management in the fashion industry. The role and functions of apparel buying houses are also evolving to reflect the changing needs and expectations of fashion retailers and brands. While traditionally acting as intermediaries between manufacturers and retailers, they were tasked with identifying and vetting suppliers who meet certain environmental and social criteria, as well as providing guidance on compliance and regulatory issues. They were also responsible for negotiating the price, checking quality, ensuring timely deliveries and managing crises of any kind. But now, the fashion industry is experiencing a paradigm shift in sourcing with the advent of technology. These buying houses are expected to undertake many chores which were earlier either not possible or practical. Use of digital tools and platforms to streamline procurement processes The process of identifying and selecting suppliers for raw materials, fabrics, trims and finished goods followed by negotiations for pricing and terms and ordering process has been made more Forecasting fashion trends; consumer preferences and creating fashion collection have to be an integral part of Buying operation Artificial intelligence and machine learning are being integrated into fashion buying operations to help customers choose the right products based on fashion trends and consumer preferences. Augmented and mixed reality technologies are being used to showcase fashion collections and reduce delivery times. These technology tools are helping fashion companies to streamline their By collecting data from various sources such as procurement systems, financial reports and supplier performance metrics, organisations can gain insights into suppliers’ performance and identify potential risks and opportunities. May 2023 | AO India37

38. BUYING & SOURCING types of value-addition equipment used and their performance, organisations can gain insights into manufacturers’ value-addition capability and identify opportunities for improvement. By documenting this data and using it to evaluate manufacturers, organisations can identify the best suppliers based on their manufacturing capability and value-addition techniques. In addition to evaluating current suppliers, documenting manufacturing capability and value-addition techniques can also be useful for identifying new suppliers. By creating a database of suppliers with such capabilities, organisations can easily identify potential new suppliers and evaluate them based on their performance against established criteria. Before analysing the data, it is important to clean the data to remove any errors or inconsistencies and ensure accuracy. Once the data is cleaned, statistical methods such as data mining and machine learning algorithms can be used to identify trends, patterns and outliers. To evaluate suppliers, key performance indicators (KPIs) such as delivery time, quality, cost, and responsiveness can be used. Suppliers can be segmented based on their performance to identify the best and worst performers. The best-performing suppliers can then be selected for future procurement activities. Supplier performance scorecards can be used to evaluate supplier performance against KPIs. Spend analysis tools can also be used to track spending patterns and identify cost-saving opportunities. Risk assessment tools can be used to identify potential risks associated with suppliers. By using data analytics to identify the best suppliers, organisations can make more efficient and objective decisions. Continuously monitoring supplier performance and identifying opportunities for improvement can lead to improved efficiency and cost savings. operations, improve communication with suppliers and customers and ensure that their products meet the sustainability and ethical standards demanded by consumers. Adoption of circular economy principles Another important trend in fashion apparel sourcing is the adoption of circular economy principles. This involves designing products with longevity in mind, using recycled materials and implementing closed- loop systems for materials and products. Brands and retailers are investing in research and development to find innovative solutions to environmental and social challenges, partnering with suppliers and manufacturers to develop more sustainable and ethical supply chains. There is a growing focus on ethical sourcing practices, such as fair labour standards and living wages for workers, as well as on the use of sustainable materials and production methods. By adopting these principles, retailers and brands can build trust with consumers, reduce their environmental impact and contribute to a more equitable and sustainable future for the industry. Overall, the fashion industry’s shift towards sustainable and ethical sourcing practices is a positive step towards a more sustainable and equitable future. As consumers become increasingly conscious of the impact of their purchasing decisions, it is important for fashion companies to prioritise sustainability and ethics in their supply chains. By utilising technology tools and adopting blockchain and the circular economy principles, fashion companies can meet the demands of consumers while also reducing their environmental impact and contribute to a more sustainable and equitable future for the industry. Some of the commonly used or expected to use tools include Product Lifecycle Management (PLM) software, Enterprise Resource Planning (ERP) software, 3D design software, virtual fitting and try-on tools, digital sourcing and procurement tools. These tools can help streamline processes, improve collaboration, reduce costs and enhance overall efficiency and transparency in the apparel buying process. Evaluating the manufacturing capability data of the suppliers Historic data is a valuable resource that can be used to evaluate suppliers and make informed decisions regarding supplier selection and management. By collecting data from various sources such as procurement systems, financial reports and supplier performance metrics, organisations can gain insights into suppliers’ performance and identify potential risks and opportunities. Data analytics can also be used to evaluate apparel manufacturers’ manufacturing capability and value- addition techniques. Manufacturing capability is often based on the kind of technology used such as automated sewing machines, automatic fabric cutting machines, and spreaders. By collecting data on the types of machines used and their performance, organisations can gain insights into manufacturers’ capabilities and identify opportunities for improvement. Similarly, value addition on garments often requires specific equipment such as embroidery machines, laser machines and digital printing machines. By collecting data on the Brands and retailers are investing in research and development to find innovative solutions to environmental and social challenges, partnering with suppliers and manufacturers to develop more sustainable and ethical supply chains. 38 AO India | May 2023

39. BUYING & SOURCING WITH SMALL BUT SIGNIFICANT STEPS, RAVELHEART OVERCOMING CHALLENGES Working with prestigious clients like Ross Men, TJ Maxx-Marshalls, Winners, rue21, dd’s Discounts, Burlington Men, Ravelheart, Tirupur is one of the leading buying houses. And under the leadership of Deepa Kohli, Harish Kumar Kohli, the company is trying to constantly move ahead. With some small but effective steps, the company is not just ensuring growth but also adding value for its suppliers too. Deepa and Harish’s background in manufacturing and strong design sense for retail and e-commerce are one of their biggest strengths. And the duo believes that due to this strength, consumers can be benefited directly. Though the overall business scenario is still unpredictable, Ravelheart is geared up for growth and it keeps getting new business ideas and working on fresh look. Moving forward, Ravelheart is also getting into manmade fibres with different blends and many more interesting stuff. It is on its way and trying to push the fabric vendors to keep on experimenting with many printing, finishing and dyeing techniques. “It’s very challenging because we have to explore many more different content, qualities and handfeel at a very efficient Deepa Kohli Harish Kumar Kohli price which our competitors are already doing around the globe. India has to diversify the various fabric components, contents, textures and various finishing which can be possible because they are pushing each other to get the best out of it and learning the curve,” says Harish. He further adds that the company is adding resiliency and consistency across all levels. Harish adds, “We have to increase our efforts as now we have more extensive research, more travelling around the globe and are deep diving into digital space, so we can have a deeper understanding of the business scenario.” The good aspect of Ravelheart is its consistency with the vendors as Harish and Deepa don’t believe in adding factories for pricing. Working with three major dedicated vendors and a couple of factories for the different categories, Ravelheart is in a process of adding more suppliers for the various other categories. Harish says, “Once you keep on adding new design directions, you ought to have different add-on setups.” Ravelheart has specialisation in T-shirts, hoodies, sweatshirts, tank tops, crop tops, joggers, shorts, shirt for men, women and kids categories comprising various knits and woven fabrics Harish then states, “We are very consistent with our factories. But yes, for the new categories and new fabrications, one has to keep adding new vendors which we are also doing because each factory has its own expertise and in order to grow further, one has to keep looking for vendors who are into new categories, also into fabrics and items.” Deepa adds an interesting point as she says, “It’s not about adding more buyers, suppliers, rather, it is about adding a new look to the label. For us, labels are meant to be refreshed because we believe consumers follow that refresh look all the time and they relate to the same.” The company is planning to use natural dyes, undyed fabrics and many more such natural items going ahead to support sustainability. Strengths contributing to Ravelheart’s growth Beautiful, exquisite designs – Versatility Fair costing -Affordability Able to deliver good products in a shorter lead time -Quality Quick decision-making and communication May 2023 | AO India39

40. WELCOME TO VARDHMAN SHOWCASE PORTAL! connect us LIVE NOW Proudly launching Melange Showcase Portal Website. Make sure you check it out. www.vardhmanmelangeyarns.in VARDHMAN TEXTILES LTD Central Markeeng Yarns, Chandigarh Road, Ludhiana-141010 T: +91-161-2228943 I E: piyushbudhiraja@vardhman.com I exp.sales4@vardhman.com 40 AO India | May 2023

41. MANUFACTURING The range at Textrum was exhaustive and the way it was explained to visitors from industry by Team Vardhman in terms of connecting to the end user was good TEXTRUM S/S ’24: INNOVATIVE BLENDS ATTRACT THE INDUSTRY With very open conversations, this edition of Textrum helped the company to have a better understanding of its customers, their choice and requirements. With a constant focus on product development and serving the clients’ needs in a better way, Vardhman Textiles Ltd., is continuously attracting the Indian apparel industry with its biannual event ‘Textrum’. Since the first edition of Textrum in 2018, the company has been scaling greater heights each year. It has become a good destination to explore new development in fabrics, be it in innovative blends, colours and weaves etc. One of the prime attractions in terms of fabrics was nylon which was used very less in India before apart from some blends of tencel and tencel with polyester. Kapil Wadhwa, Divisional Merchandise Manager, Li & Fung, Hong Kong sees the event from a larger perspective as he shared, “There were a lot of products in the blends which were not being done in India before, but now mills like Vardhman are playing around with different fabrics and different fibres and then they are trying to bring up quality which was not India- centric earlier. China was one of the players doing such quality before. But considering the geopolitical situation, many buyers are trying to come out of China. And I think that this is the best platform to showcase such kind of strength out of India and the new developments to all the US and Europe customers.” The company recently organised a two- week-long Textrum Spring/Summer ’24 at the beautiful Design Studio in Baddi (Himachal Pradesh). Designers, merchandisers, sourcing professionals from leading Indian brands, global fashion giants, established buying houses were overwhelmed to explore the interestingly presented collection. representatives can have enough time to travel as well as explore the offerings of the company. And this really worked as Sanjay Gupta, VP, Marketing, Vardhman Textiles says, “As expected, we had very good footfalls every day and as our visiting partners had enough time, in-depth discussion could take place with them. We were able to cater to them in a personalised manner.” Team Vardhman strategically kept the event for two weeks so that the industry May 2023 | AO India41

42. MANUFACTURING He further added that one of the prime attractions in terms of fabrics was nylon which was used very less in India before apart from some blends of tencel and tencel with polyester. Brands appreciated the efforts of Team Vardhman not just in terms of their efforts for innovation, but even in terms of the way they described the overall detail about development to them. Venkatramana Bhat, South Asia-Material Manager, Columbia Sportswear India Sourcing said, “The range was exhaustive and the way it was explained to us in terms of connecting to the end use was good. Some of the products were presented up to the garment level, which was a very good initiative.” Regular casualwear and formalwear grabbed the attention of several brands in the event. Bhanuprakash GS, Head- Strategic Sourcing-Lifestyle Brands, Aditya Birla Fashion and Retail was also content to explore various blends as he said, “I found a lot of innovation and many good blends like modal and tencel. The presentation was fantastic.” Design Direction // TEXTRUM S/S ’24 The four key trend themes to emerge from Textrum Spring/Summer 2024 were Resourceful, Well-Verse, Sartorial Statement and Crafty Summer. Ravi Chauhan (Head - Innovation and Design), Vardhman Textiles added, “Our collection is curated for the diverse consumers and tapping on the freshness of summer with a keen focus on craftsmanship, versatility, while being purposeful and tech-driven at the same time.” Apparel Online (AO) explores the four themes in detail below: Resourceful This theme seeks to encourage sourcing in-house and to deal in country-originated materials, while at the same time, it emphasises working with suppliers that have a proven record of reducing greenhouse gas emissions. The theme focuses on developing transparent supply chains and creating materials that can be returned to nature. Some of the concepts that the Resourceful theme explores include refined stretch, bi-stretch, washed and crinkled shirting, twill, HBT, water and bio-based, anti-microbial, CVT, anti-bacterial, UV protective, quick dry, liquid ammonia wrinkle-free and zero formaldehyde. Well-Verse This trend not only talks about sustainability but also places emphasis on celebrating the things that bind and support us be it people, places, customs, a mental and physical state of being calm and peaceful, cultures and communities. This 4D trend direction focuses on products that feed our overall sense of well-being and security. The materials under the Well-Verse theme include Recycled Cotton/ Polyester; Lyocell; Refibra; Spinnova; Liva-Eco; Bio-Based Polyamide; and Poly Stretch, a range of natural materials including cotton, linen, hemp, ramie and jute across the summer season as well as low impact cellulosic fibres that find their application in blouses, shirts, tops, bottoms, lounge wear, sleepwear, outerwear, boxers, pyjamas and short sleeve garments. The materials include 100 per cent cotton, PC, Viscose, Recycled cotton, Tencel, Modal, Cotton/Polyester/ Nylon spandex and their applications can be found in loungewear, sleep wear, utilitywear, tops, shirts, bottoms, outerwear, vacation casuals, boxers, pyjamas, short sleeve garments, etc. “As expected, we had very good footfalls every day and as our visiting partners had enough time, in-depth discussion could take place with them. We were able to cater to them in a personalised manner.” Sanjay Gupta VP, Marketing, Vardhman Textiles 42 AO India | May 2023

43. MANUFACTURING The materials are breathable, comfortable and feature loose construction while exploring concepts of sustainability, applying digital filters to perennial florals, tropical and camouflage patterns. Twills and canvas offer durability with pigment coating, anti-viral and anti-UV finishes. Sartorial Statement This theme is rooted in the reality of a world that is facing tangible and unprecedented challenges, and an exploration of how they can be solved in alternative and even speculative ways. Here, science becomes fiction and fiction becomes science, as creatives and thinkers explore how to make something unique that can be used to unearth new solutions for the physical world. Materials under this theme include ultra-fine denier polyester and nylon having voile-like lightness, metallic, crinkled cotton/silk stain, Naia, glossy, lurex, lame, silk, mono fibre, filament Tencel, viscose and cupro that find their application in shirts, jackets, bottoms, tailoring, occasionwear formals, festivalwear, casual separates, dresses and matching/ coordinated sets. Key concepts explored in this theme include a playful spin on a classic look, refined texture, sheer tech organza, shiny utility, gender inclusive, vintage yarn dyed, summer melange, iconic preppy and heritage styles, engineered pattern and placement motif. of outdoor sporty group activities and vacation clubs, moving on to the perennial camping aesthetic with unexpected combinations and textures, comfort and fresh new colour combinations. The theme places focus on materials such as space-dyed and slub yarns, linen, hemp, texture yarn, natural linen, ramie, homespun yarn, crimp, melange, mouline, nep, boucle, undyed fibre slubs, micro marls and neps that add a texture similar to that of impasto painting. Crafty Summer This theme reflects upon the importance of coming together as a community. Be inspired by the fun It finds a wide range of applications in outerwear, cut-and-sew garments, ankle-length trousers and shorts, beachwear, all-day active, campingwear, blouses, resortwear, summer occasionwear, skirts and vacation casuals. “Our collection is curated for the diverse consumers and tapping on the freshness of summer with a keen focus on craftsmanship, versatility, while being purposeful and tech-driven at the same time.” Ravi Chauhan Head - Innovation and Design, Vardhman Textiles Breathable, featuring loose construction and a knit look, is a crafty summer theme which explores key concepts that include experimentation with 3D textures, placement prints and motifs, adding fun, patchwork and over stitch overstock together into unique checks, leno, hopsack and basket weaves, vintage home craft, cottons with a light and crisp handle, ombre, relaxed resort stripes and homely craft. May 2023 | AO India43

44. MANUFACTURING Having spent three years in yarn division and then an MBA from London Business School, Sagrika Jain, the fourth generation of Ludhiana- based textile conglomerate Vardhman Group, has recently taken charge as Executive Director of Vardhman Textiles Limited. Exactly three years ago, Apparel Online (AO) interviewed her prior to her higher studies which was focused more on her personal performance and entrepreneurial bent but now as she is very much part of the management, this time in an exclusive discussion, she thoroughly shared the company’s strategy regarding product offerings, market and sustainability. And it is heartening to see how she is taking care of the company holistically, not only the business part but also the social reforming part. Sagrika is very well aware of the responsibility on her, so she is immersing herself in this business to become a catalyst to take it to the next level. ‘MANAGING THE COMPANY HOLISTICALLY - BUSINESS AND SOCIAL ASPECTS’ SAGRIKA JAIN ED, VARDHMAN TEXTILES AO: Vardhman has focused on moving from commodity to value-added product lines. Apart from regular products, the company has also ventured into products like travel shield range of fabrics, functional fibres to fit in the athleisure segment. What is the achievement in these segments and are you satisfied with the progress? What’s new in the pipeline in this direction? Sagrika: If we see the last few years, we have achieved remarkable progress. Before 2015, the company’s focus was on cotton and on bottoms. Then once we decided to increase capacities, we realised that to fuel this expansion, we had to diversify. We have successfully enriched our product basket to include value- added products and offer multi- blends including cellulosic, recycled and different varieties of polyesters, lots of functional fibres, nylon etc. From menswear and bottoms, we have pivoted and got tops, womenswear and kidswear in our fold. Fabric for product categories like activewear and outerwear is 44 AO India | May 2023

45. MANUFACTURING Four Generations of Vardhman Group Rattan Chand Oswal SP Oswal Suchita Oswal Jain Sagrika Jain Sagrika: Sustainability has been in our DNA even before it became fashionable. And for us, sustainability does not just mean sustainable products or sustainable processes, it means sustainability in the true sense covering all aspects. Right from selecting machines and raw materials, our focus is on sustainability, so every decision in the company has been taken in light of this. very much in our portfolio as well. All systems are in place for the same, be it ZLD, solar power etc. Our Higg index score is 80-plus which is in the top bracket. A lot of our collections are built keeping sustainability at the core. Recently, we set up a cotton recycling plant, Vardhman ReNova for processing post-industrial waste. Even if any initiative or project needs some extra capital due to the sustainable aspects, the company ventures into that project without any hesitation. Similarly, on the social sustainability front, we are very proud of our achievements. We have now reached a female workforce of about 40 per cent at the worker level, Vardhman is among the pioneers when it comes to hiring women for night shift and we have certain facilities which are 100 per cent women-led. We are very clear that we need more women workers because if you look at our social construct also, women are in a ratio of almost 50:50. This should reflect in work as well. We have to be the leaders in society in this regard. We are also quite open to conversations about diversity, inclusion and equity. And we focus We are happy to display variety and innovations in Textrum. To see the full gamut of products has been very encouraging and overwhelming in a very positive way. Though we have made good progress but as an entrepreneur, I think one can never be satisfied with the progress because some form of dissatisfaction keeps allowing you to grow further. So, our strong innovation cell and raw material research department is constantly on the lookout for new, advanced materials, keeping factors such as overall demand and interest of our buyers, commercial scalability in mind. We have a mandate that at least 40 per cent of our sales needs to be purely domestic and we have a dedicated design and marketing team for the Indian market. Even in our Textrum event, we had a fantastic lineup of domestic brands and buying houses. Moving forward, regarding the product portfolio, some of the major developments are in progress and we will disclose details about them at the right time. AO: What is your assessment of Vardhman Textiles’ fulfilment of responsibility in the context of sustainability given that sustainability is a pervasive phenomenon and the textile industry is widely regarded as one of the most polluted industries. May 2023 | AO India45

46. MANUFACTURING on inclusion hiring women from multiple underprivileged societies. Another interesting initiative is our PACE program in collaboration with GAP where we have covered 2000 women already. The program focuses on holistic advancement of women by covering essential aspects such as health and hygiene, decision- making, problem-solving, financial literacy etc. Our CSR arm is running a very successful project on menstrual health management called Project Nandini which not only includes hardware such as vending and disposable machines, but also software such as mindset shift and awareness. So far we have covered 25,000 women under this project and have plans to continue expanding. Overall things are taking shape more aggressively and we are also in touch with experts. In future, our efforts and thrust will increase for sustainability and it will always be the centre piece for us. units, thus leading to reduction of maintenance costs. Digitalised sampling and developments helped us to reduce wastage and improve lead time. Moving forward, we are migrating to a more advanced ERP and also extending IoT to Processing. Natific’s Digital Colour Technology is another software we are using that has enabled digital colour matching. efforts continue to grow along with them. AO: Going forward, do you want to carry forward the systems set by your family or do you have a different way of leadership and want to set your own standards in the business? What is the major difference in working style and thought process that you see between yourself and the previous generations of the group? Sagrika: The kind of legacy and the kind of immense respect that Vardhman has makes me feel very motivated to give more and to continue to add value. AO: Indian domestic market is growing well. What are your efforts to grow here and increase your share in the same? Sagrika: We have a mandate that at least 40 per cent of our sales needs to be purely domestic and we have a dedicated design and marketing team for the Indian market. Even in our Textrum event, we had a fantastic lineup of domestic brands and buying houses. The way big Indian players are growing in organised retail and international brands are constantly entering and flourishing in India, the domestic market will grow like anything. We are proud citizens of India and we believe in honourable Prime Minister’s Make in India push. We have our eyes on emerging Indian brands and our I am still getting inducted into the organisation and my journey has just begun. My endeavour is to first learn and appreciate what my previous generations have set, and then blend the old with the new. The systems that they have built up are very, very robust and I’m quite proud of them and this will always be my starting point. Following an open-door policy and listening to team and being accessible towards them have helped me go a long way because my teams are extremely supportive and they help me grow. In line with my generation, my thrust will be more towards a work-life balance. To give your best at work, your life needs to be wholesome. There is a real business case for it as happy employees are more productive. AO: Data digitisation also has been your priority area. How has it helped you so far and what’s next on your radar? Sagrika: Interestingly, 90 per cent of the data that is generated is not used and there is no doubt that what can’t be measured can’t be improved. And I am content to say that we are a very data- centric organisation. The major decisions we take are based on data analysis. It is helping us not just in monitoring, but also taking important decisions and this leads to more productivity. Data usage also creates comfort amongst our professionals as with the help of data, things are more transparent and traditional reporting has been reduced. We are successfully using IoT in our Spinning and Weaving Vardhman Group’s textiles operations are spread across 6 states including Punjab, Himachal, MP, Gujarat, Tamil Nadu, Andhra Pradesh. With around 1.13 million spindle count and Rs. 9622 crore revenue from operations in FY 2021-22, it has a strong hold on yarn, fabric, sewing thread and garments. As an organisation we believe in manufacturing excellence. My goal would be to also pivot more towards fashion and market forces. I aim to marry our superior technical capabilities with innovation and design. Another change I would like to bring is in the area of diversity, inclusion and equity by having women representation at senior positions. This is the need of the hour and something that is close to my heart. 46 AO India | May 2023

47. MANUFACTURING ‘THE BEST YEARS FOR TEXTILES BUSINESS ARE YET TO COME’ MUKESH BANSAL EVP, MARKETING, VARDHMAN TEXTILES LTD. Mukesh, a fabric marketing expert, is completing three decades with the company, and as a senior management official, he is a keen observer of national and international developments taking place and their impact on the industry and keeps a tab on the ups and downs of the industry at all levels. AO met him during Textrum to understand why he thinks that the textile industry has a bright future ahead. AO: Why do you think that the Indian textile and apparel industry has a bright future ahead? Mukesh: Look for yourself, the Government is actively supporting the industry, be it with schemes like PLI, PM MITRA, Make in India and overall thrust on improved infrastructure etc. And there is impact of the Government’s decisions on the ground level also. Like 61 companies have been approved under PLI scheme and there are discussions about PLI 2 for textiles. Similarly, seven leading states, that have a larger focus on textiles, have been announced for PM MITRA scheme. These are big schemes and will have a long-term positive impact on our industry. ‘Make in India’ is already showing impressive results. It shows that the Government is now determined to bring in some systemic changes which were always required in the industry rather than having to settle for short-term incentivisation or some subsidisation. Of course, the Government has always been announcing various schemes but the conviction with which the present Government commands excellence in the execution of such schemes is indeed remarkable. Similarly, if you see in the last 10 years, there has been the implementation of GST, the removal of interstate barriers, the infrastructure built-up and special schemes for regional warehouses which may seem minor but have brought in major changes for the better. These kinds of changes were always required in the industry and are happening now. India’s GST collections are robust which indicates our economy’s positivity besides an affluent middle class who are growing with each coming day. Not to forget the foray of international brands into India and many of them performing phenomenally well. Now look at the large format retailers - we never had them 10 years ago. So I am a firm believer in India’s growth story. Coming to the vision of reaching US $ 350 billion by 2030, we need to set a standard benchmark to achieve within a specified period and it requires a lot of investment from the private sector also. With all the above-mentioned and other initiatives, India’s textile and apparel export as well as the domestic market are bound to grow. We at Vardhman are continuously looking for opportunities and have set our goals to achieve double-digit growth with new products and new manufacturing set- ups. export is also highly significant. So whatever changes happen in the world, we are not insulated from that. But ultimately, the global business has to grow and that gives us the confidence and positivity to carry along. The last few years have seen supply chain disruption and various challenges but now in the next 4 to 5 years, I think a new balance will emerge. At one point in time, China was the factory to the world but now that sentiments are changing, the players in India and globally stand a better chance to succeed in the global arena. I would say that now we have immense growth opportunities. Opportunities are lying ahead with China plus one being there, a stable Government and the people in the US and Europe seeing India as a sourcing hub. Now the Government is responding and the private sector also has to respond in tandem. The next 10 years are going to be great for the Indian subcontinent’s textile operations. It is only a matter of time before the situation starts improving in three months or six months or one year. But at a macro-level, in the long term, we are set to see very good progress. In our event Textrum, our team met senior officials of more than 60 companies including national and international brands, and retailers from across India and a few from other countries also. And all of them were bullish about business, sourcing from India and their operations within India. So, I don’t see any reason or apprehension regarding India’s growth in the textile and apparel industry. AO: Globally various developments have happened. How do you see the impacts of these developments on India’s textile industry? Mukesh: Overall, the Indian textile demand is governed by domestic consumption, and at the same time, May 2023 | AO India47

48. MANUFACTURING Brandix India Apparel City, located in Atchuthapuram Mandal in Visakhapatnam (Andhra Pradesh) is one of the best examples of successful apparel operations in India by an overseas group GLOBAL APPAREL GIANTS CONTENT WITH ‘ADVANTAGE INDIA’ Holdings is also in India for years. These manufacturers have made significant investments in India in recent years. With CIEL Textile’s wholly-owned subsidiaries, Aquarelle and Laguna India, total investments are likely to be US $ 100 million by the end of next year. The company has set up six facilities in Karnataka, which have a combined production capacity of over 14 million pieces of clothing per year. Aquarelle and Laguna India have also achieved LEED Platinum certifications for two of their six factories. Meanwhile, Brandix, also known for its many sustainable initiatives, has generated employment for nearly 22,000 people. Most of the business stalwarts across the globe are firm believers in India’s growth story and a few global apparel giants like Brandix, MAS Holdings and CIEL Textile Group had realised India’s strength long back. This is the reason that they are successfully enjoying growth and expanding their manufacturing footprints in the world’s fifth-largest economy. This ‘Advantage India’ scenario is continuing as major apparel manufacturing groups like Jordan-based Classic Fashion Apparel Industry Ltd. Co., Hong-Kong- based EPIC Group and Korea-based Youngone are also focusing on India as an apparel manufacturing destination for them. Apparel Online (AO) explores the elements that pushed international companies decades ago and is pushing other such companies now also to invest big time in India. In fact, apparel stalwart groups are now bullish about India in all ways. Factors that pushed companies decades ago For some, India’s growth story may Jayesh Ranjan Principal Secretary, Industries and Commerce (I&C) Department and Information Technology, Electronics and Communications (ITE&C), Government of Telangana It is worth mentioning here that none of the companies reduced their international operations and India was/ is their choice for expansion. Throughout the ups and downs that the market faced, these companies maintained a consistent pace of investment, which contributed significantly in making India a preferred destination for expansion. Despite facing challenges and uncertainties, these companies recognised the immense seem to be a recent development taking place in the last 5-8 years, but as far as investment in apparel manufacturing is concerned, it’s almost 15-20 years since these giants stepped into India. Mauritius-based CIEL Textile entered India almost 20 years back, Sri Lankan apparel giant Brandix is completing almost 18 years in India, similarly, MAS 48 AO India | May 2023

49. MANUFACTURING potential of the Indian market and continued to invest in it. Their unwavering commitment to investing in India has not only helped to create employment opportunities but also fostered economic growth in the country. These companies have leveraged India’s vast pool of talent and resources to establish a robust foothold in the Indian market and expand their operations. Brandix India Apparel City (BIAC), located in Atchuthapuram Mandal in Visakhapatnam (Andhra Pradesh) is one of the best examples of successful apparel operations in India by an overseas group as it has trained more than 80,000 people from the surrounding areas, with over 80 per cent of its employees being women. Brandix had got the much-needed push with a combination of the State Government extending its fullest support and its customers seeing the early potential of ‘Made in India’ that triggered the group’s interest. Location is a key aspect to be considered for apparel manufacturing as it includes one-factor costs; stability of power and water supply; availability and training of workers; access to markets; a customer’s need to de-risk and diversify their sourcing locations etc., to be taken into account. Keeping these points in mind, Brandix chose this location. Suchira Surendranath, Director – Strategy and Investments, BIAC shared with AO, “The location we picked, a literal green field at that time, had plenty of people available and willing to try their hands with an apparel industry job – that is what motivated us the most. The Government agreed to take care of water, power and road infrastructure, and all we needed to do was take care of the rest. We knew that if we set up the right foundation, bring the right partners in to help make a start, the natural potential of India would help scale up the operation eventually – and we were right.” Started in Mauritius, the CIEL Textile group later extended its operations to Madagascar and three decades ago, while the quota regime was being removed, the Sanal Kumar CMD, Classic Fashion Sarbajit Ghose Member Board of Directors, CIEL Textile and MD, Laguna Clothing group did a detailed assessment of which countries they would like to diversify and India was the first choice. cent of its total business. Walmart aims to purchase an overall US $ 10 billion worth of goods from India annually by 2027 and it motivated Classic Fashion to foray into India. Targeting mid to up-market customers, CIEL Textile found a unique atmosphere in setting up manufacturing operations in India with political and economic stability, vertically integrated textile chain across product categories, talent pool, cultural fit, a great alternative to China and ease in doing business. “We started our joint venture with three of the manufacturing facilities in Tirupur almost 20 months back, with greater push by Walmart for the same as the global retail giant wanted to increase sourcing from India and our organisation has a strong long-term relationship with Walmart,” said Sanal Kumar, CMD of the company who is expecting to add 5,000 fresh jobs in India. And today, CIEL Textile group is one of the respected names in India with companies like Laguna, Aquarelle India (both in Bengaluru) and Tropic, Coimbatore Having sourcing of around US $ 15 million from India last year, which includes knitted garments, Classic Fashion will increase its revenue from India to US $ 20 million in the current fiscal. Today these three companies are aggressively active on various fronts for talent and they have a partnership with NIFT, IGP. They also have a strong thrust on digitalisation including data- driven factories, automation, digital showroom and 3D and AI-driven design. Rather than investing in a new capacity, Sanal Kumar decided to opt for a joint venture as he found good capacity here. It helped him to save huge fresh investment and he supported already running facilities in terms of financing projects for using better technology and fabric procurement. Route option works well for few joint ventures The thrust of buyers to source more from India is pushing India’s manufacturing and this is the biggest reason why reputed companies like Classic Fashion, a Jordan-based manufacturer having a turnover of around US $ 954 million, are rapidly venturing into India. Classic Fashion is working with Walmart since 2006 which contributes almost 40 per India - an incredible experience All overseas companies are content with their working in India and term it as incredible. May 2023 | AO India49

50. MANUFACTURING “Our operations in India have been very successful and have far exceeded the initial expectations of the group. Laguna and Aquarelle are witnessing exponential growth and have been rapidly adding manufacturing capacities. New factories, set up close to Bengaluru, are amongst the best in the world. Top international brands are increasing their production from these factories and Tropic is a relatively younger business and is showing great promise,” informed Sarbajit Ghose, Member Board of Directors, CIEL Textile and MD, Laguna Clothing. For Brandix also, India proved to be an incredible experience and the group is proud of its journey as what started as a single apparel plant has now grown into a fully integrated vertical textile and apparel ecosystem. “Our manufacturing operations have evolved significantly over the years, with a focus on automation, digitisation and sustainability. Automation has led to higher productivity and better quality of output, while digitisation has enabled us to speed up processes and better integrate across the value chain. Sustainability has always been a key priority for us and we’ve made significant progress towards our goal of becoming a Net-Zero Carbon Park by 2030. We’re proud to be a zero hazardous waste-landfill park,” said Suchira. BIAC is the first industry in the state to have installed a solar sludge drying process unit that avoids the landfill of hazardous waste. Over the past 15 years, Brandix has seen its extended ecosystem beyond the boundaries of BIAC. Small junctions have transformed into bustling townships, with improved education and health facilities grooming and enticing a new generation of local candidates who can take up management roles in the company and lead it to even greater heights. New players on their toes to explore opportunities Youngone Corporation and Epic Group are the two globally known players who have committed to starting operations brand that celebrates fine Italian heritage and craftsmanship. And a more recent and perfect example is MAS Holding’s JV with Tata Group’s Trent Ltd. setting up an entity in India for the joint development of the business into intimatewear and other apparel products. This partnership further aligns with MAS’ long-term intent to scale business and expand its presence in India. MAS’ design and manufacturing span across 17 countries. About this JV, Desamanya Mahesh Amalean, Chairman, MAS Holdingssaid, “The significance of our partnership with Tata lies in our shared sense of values and an appreciation of the enormous business opportunities that the Indian market affords. This will help leverage our combined capabilities, connecting MAS’ expertise in product creation and manufacturing with Tata Trent’s expertise in Indian retail.” Talking to AO, Roger Guy Young, Chief Strategy Officer, Epic Group said, “India is a good opportunity as many big retailers have their retail operations in India and they are growing, those which are still not in India will sooner or later become a part of it. Factors like huge young population and disposable income, stable Government, strong and constantly improving infrastructure are in India’s favour.” Epic’s team is exploring various schemes of the Union Government. The group will produce both knits and woven garments in India and is expected to start operation in the second half of 2024. The focus will be to export from India as well as to cater to the Indian domestic market. For Youngone, the push to invest in India came from Telangana’s industrial policies. Three years ago, Youngone Corporation announced to invest more than Rs. 900 crore in the Kakatiya Mega Textile Park (KMTP) in Warangal (Telangana) producing knitted and woven garments for outdoorwear and creating around 12,000 direct jobs. It was supposed to start its operation in the state in January 2023 but couldn’t. Jayesh confirmed that the operations will commence in phases with the first unit Roger Guy Young Chief Strategy Officer, Epic Group in India in the next 12-18 months. There are a few more companies that are considering to start operations in India as they are in discussion with various State Governments. Jayesh Ranjan, Principal Secretary, Industries and Commerce (I&C) Department and Information Technology, Electronics and Communications (ITE&C), Government of Telangana told AO, “While discussions are ongoing with more than one apparel-based overseas companies, we believe this is not the right time to get into the details as the discussions may be preliminary and/or confidential.” The quick support of Telangana to the interested investors is a perfect example of how states should support the prospective investments on ground level. And as now PM MITRA Park is approved in the state, there are enough chances that the state will attract more investments. Apart from the reasons which also motivated Brandix, CIEL Textile and MAS Holdings, constant improvement in the organised Indian apparel retail market is another reason for new entrants to have a strong manufacturing footprint in India. Exploring the fast-growing domestic market as an opportunity, two years ago, Laguna Clothing launched Aldeno - a luxury premium 50 AO India | May 2023