Nandan Exim Ltd., a leading player in the denim segment, has been renamed as Nandan Denim Ltd. In the last 10 years, Nandan Exim has extensively expanded its business operations beyond import-export and is emerging as a leading player in the denim market. The company is having its own spinning, weaving and finishing units and has recently entered the readymade garment sector. Thus, the scope of its activities is no more limited to import & export.
With this integration of activities and growth plans, the name change represents a logical step in the company’s transformation. There is a need to develop a very strong branding and marketing presence in domestic and international markets. In today’s context, the company’s name reflects only one of its business activity and does not capture the range of other activities carried on in India and worldwide.
Mr. Vedprakash D. Chiripal, Chairman, Nandan Denim Ltd., said: “The word ‘Nandan’ has been associated with the company since years and is considerably more familiar to customers, stakeholders and people associated with the company. The company is recognized by the word ‘Nandan’ which is an integral part of the company reflecting its identity. Based on the exercise conducted by the management on alternative names for the company, the name ‘Nandan Denim Ltd.’ seemed most appropriate”.
In 2012-13, the company achieved a turnover of Rs. 703.12 crores as compared to Rs. 573.84 crores in the previous year, registering a growth of 22.52 per cent. Net profit rose to Rs. 31.05 crores as compared to Rs. 18.79 crores the previous year.
Nandan is implementing the expansion projects by increasing its production capacity continuously in order to grab the growing demand for denim fabrics in the domestic and international markets and thereby increased its volume and activities in the field. Further the company is aiming to achieve high volume with additional capacity to improve its performance and thereby its share in the market.
Denim industry in India
India started very late in denim despite the fact that textiles is the oldest industry in the country. It is rich in cotton, and denim is basically a cotton-based fabric. At that time, due to lesser demand in the domestic market, India was exporting almost two-thirds of its denim production when production was 300 million metres per annum. With the passage of time domestic demand started growing. Simultaneous to the increase in capacity, domestic demand also increased.
In India, demand for denim has been growing at a phenomenal pace in the recent years. Around five years ago, the annual production capacity was around 600 million metres. Today it is around 1,000 million metres. In the past two years, the Indian denim industry has seen an increase in capacity of about 200-250 million metres. New players have come in, and the existing players have expanded their operations. By 2015, the production capacity is expected by industry analysts to grow and reach around 1,200 million metres.
Another interesting fact is that during the past 12 to 18 months, there has been a notable decline in the production of denim fabrics in the US and China, and hence supplies from these countries have been declining. As a result, approximately 150-200 million metres of exports are expected to be added to the Indian denim export volume.