Apparel April 2019 Apparel April 2019 issue | Page 30

MARKET WATCH Grasim Acquires Soktas CMAI Western Region Organises ‘Chai Pe Charcha’ The Western Regional Committee of The Clothing Manufacturers Association of India (CMAI) arranged a Meeting of the Members of the Western Region on Friday, February 8, 2019 at Hotel Basera, Pune on ‘Chai Pe Charcha’, to have an Interactive Discussion on the Proposed Working of the Western Regional Committee for the next Two Years. At the outset, the newly Elected Incoming Chairman, Mr Rajiv Agarwal, felicitated the outgoing Chairman Mr Jayanti Veera and expressed gratitude on his Contributions to the Regional Committee whilst he was the Chairman. Some of the Suggestions received during the Meeting were to Increase the Membership, bring all the Manufacturers of Readymade Garments under One Place and interact once a month so as to understand the difficulties being faced by them and find solutions. Members also suggested that a Directory of all Garment Manufacturers in the Western Region be made and Circulated amongst them, and to Develop a Website and WhatsApp Group, and Share the Ideas amongst the Group Members. Another important Point discussed was that the Manufacturers from Pune should Participate in the National Garment Fair (NGF) organised by the Association in Mumbai and also request the Fair Sub-Committee for a Pavilion exclusively for Pune. 24 I APPAREL I April 2019 Grasim is buying Soktas India. This is currently a wholly-owned subsidiary of Soktas, based in Turkey, a producer and marketer of fabrics. At present, Soktas is in the business of manufacturing and distribution of premium cotton fabrics with its manufacturing facility in Maharashtra. The company posted a revenue and EBITDA of R186 crore and R31 crore, respectively, for the fiscal ended March 2018. It sells premium fabrics in India under the brands Soktas, Giza House and Excellence by Soktas. The company is also a supplier to leading Indian and global menswear brands. The acquisition is in line with Grasim’s business strategy to strengthen its presence in the premium fabric market. Grasim’s aim is to strengthen its leadership in the premium cotton and linen fabric market in India. Increasing disposable income, fashion and quality orientation of Indian consumers has resulted in an increase in the demand for premium fabrics over the years. The company is known for its fabric brand Liva introduced in 2015. Grasim, a part of Aditya Birla, is the world’s fourth largest pulp producer and one of India’s largest viscose staple fibre (VSF) producers. In India, the demand growth for VSF at eight per cent is higher than the global demand growth. Under Armour Enters Indian Retail Under Armour is set to open retail stores in India. The US-based sportswear brand will start operations by opening stores in metros and selling its global portfolio of training and running products. The company, which had partnered with Amazon and Flipkart- owned Myntra to sell some of its products in India, has set up a wholly-owned subsidiary in the country. Under Armour, which uses brand endorsers, including WWE star-turned Hollywood celebrity Dwayne The Rock Johnson, Olympic swimmer Michael Phelps and heavyweight boxing champion Anthony Joshua, has been testing cricket-related products in Jalandhar. It has also reached out to Indian cricketers.The company has been investing in Asia Pacific as there are long-term growth opportunities. It has been concentrating in China over the last few years and over the next couple of weeks will be establishing its retail presence in India. Under Armour has been working on improving operations, including supply chain initiatives that are expected to help boost 2019’s gross margins. Most global sportswear companies, however, have found it difficult to crack the price-sensitive Indian market. The sector recently witnessed heavy restructuring, too, with several top companies laying off their employees and taking major functions out of India to cut costs.