LNJ Denim, one of the largest manufacturers and suppliers of denim fabrics to domestic and international brands, is planning to treble its production capacity by next year. Riding on this volume growth, the company is eyeing revenue of Rs 500 crore by 2014.
The company is part of Rs 2,000-crore textiles company RSWM Ltd, which in turn is a unit of the Rs 5,000-crore LNJ Bhilwara Group.
“At present, we manufacture 10 lakh metres of fabric per month and we are planning to take this up to 15 lakh metres a month by August this year. By next year, our production capacity is expected to touch 30 lakh metres per month with the expansion of our facility in Rajasthan,” said YC Gupta, CEO and business head of LNJ Denims.
Gupta added that the company has already invested Rs 250 crore for its existing facility and will pump in an additional Rs 250 crore by 2013-14 for further capacity expansion. “About 25 per cent of this amount will be funded internally, while the remaining will be raised from banks,” he said.
LNJ Denim supplies denim fashion fabrics to international brands like Diesel, Gap, Zara, Lee, Levi’s, Debenhams, Ralph Lauren, Marlboro Classic, Mustang, C&A, J Crew, Tommy Hilfiger, Ann Taylor, Gymboree, Pepe Jeans and Jack & Jones. It also supplies fabrics to domestic brands Cantabil, Pantaloons and Provogue.
Gupta added that the increase in capacity would lead to the company clocking revenue of Rs 500 crore in the next three years. At present, the company gets 60 per cent of its turnover from sale to domestic companies. Going forward, it intends to get an equal share of revenue from exports and domestic supplies.
The Indian textile industry is growing fast and expected to reach $220 billion by 2020. Denim is likely to play a significant role in this, with annual growth of 12-15 per cent. “In India, the denim market is a 700 million metres per annum industry and is expected to touch 1,100 million metres per year in the next five years. Of this 700 million, about 450 million is consumed in India, while the rest is exported,” Gupta said.
According to Gupta, the surge in demand for denim in India is primarily driven by the shift towards informal wear. “Earlier informal clothing was popular in the metros but this has now spread to people living in non-metros as well,” he added.
The company competes with Arvind Mills, Raymond and Mafatlal.
The company is part of Rs 2,000-crore textiles company RSWM Ltd, which in turn is a unit of the Rs 5,000-crore LNJ Bhilwara Group.
“At present, we manufacture 10 lakh metres of fabric per month and we are planning to take this up to 15 lakh metres a month by August this year. By next year, our production capacity is expected to touch 30 lakh metres per month with the expansion of our facility in Rajasthan,” said YC Gupta, CEO and business head of LNJ Denims.
Gupta added that the company has already invested Rs 250 crore for its existing facility and will pump in an additional Rs 250 crore by 2013-14 for further capacity expansion. “About 25 per cent of this amount will be funded internally, while the remaining will be raised from banks,” he said.
LNJ Denim supplies denim fashion fabrics to international brands like Diesel, Gap, Zara, Lee, Levi’s, Debenhams, Ralph Lauren, Marlboro Classic, Mustang, C&A, J Crew, Tommy Hilfiger, Ann Taylor, Gymboree, Pepe Jeans and Jack & Jones. It also supplies fabrics to domestic brands Cantabil, Pantaloons and Provogue.
Gupta added that the increase in capacity would lead to the company clocking revenue of Rs 500 crore in the next three years. At present, the company gets 60 per cent of its turnover from sale to domestic companies. Going forward, it intends to get an equal share of revenue from exports and domestic supplies.
The Indian textile industry is growing fast and expected to reach $220 billion by 2020. Denim is likely to play a significant role in this, with annual growth of 12-15 per cent. “In India, the denim market is a 700 million metres per annum industry and is expected to touch 1,100 million metres per year in the next five years. Of this 700 million, about 450 million is consumed in India, while the rest is exported,” Gupta said.
According to Gupta, the surge in demand for denim in India is primarily driven by the shift towards informal wear. “Earlier informal clothing was popular in the metros but this has now spread to people living in non-metros as well,” he added.
The company competes with Arvind Mills, Raymond and Mafatlal.
