VIP Clothing is exploring opportunities in the technical textiles segment
VIP Clothing is a leading clothing company with a rich history dating back to its founding in 1971. Over the years, we have become a well-established player in the fashion industry, offering a diverse range of products under various brands, including VIP, Frenchie, Feelings, Leader, and Brat. Our product portfolio encompasses a wide array of clothing items, including Briefs, Trunks, Vests, and leisurewear, catering to the varied preferences of our customers. Kapil Pathare, Director, VIP Clothing, shares the current offerings and future goals with Divya Shetty.
Kindly brief us about your company.
What sets us apart is our commitment to delivering top-notch quality and innovative designs. We take pride in offering products that reflect the latest fashion trends while ensuring comfort and durability. Our success is not limited to the domestic market; we have also cultivated a strong international presence, thanks to our strategic partnerships with distributors and retailers.
VIP Clothing operates with a clear vision and mission. Our vision is to be a part of every Indian’s wardrobe and extend our reach globally. To achieve this vision, we are dedicated to continuous improvement in customer satisfaction, innovation, manpower development, productivity enhancement, quality improvement, cost reduction, and time management.
How was your performance in FY23? What were the key challenges?
The fiscal year 2023 brought both opportunities and challenges for VIP Clothing. Our performance was notable, despite the complexities we encountered.
Key challenges
Supply chain disruptions: The global disruptions in supply chains, including logistics and raw material shortages, posed significant challenges. These disruptions affected the timely procurement of essential materials.
Market volatility: The fashion industry is known for its ever-changing trends and consumer preferences. Navigating through market volatility and staying attuned to evolving fashion demands required agility and adaptability.
Performance highlights: Despite these challenges, VIP Clothing Ltd managed to achieve growth in FY23. Our standout achievements included:
The successful launch of Frenchie U19, a groundbreaking innerwear brand tailored specifically for teenagers. This marked a significant milestone, as it was India’s first innerwear brand catering exclusively to this demographic.
Our consistent commitment to quality and innovation enabled us to maintain customer loyalty and satisfaction. Our diverse product range, including VIP, Frenchie, Brat, Feelings, and Leader, continued to resonate with our loyal customer base.
Our growth in FY23 can be attributed to effective supply chain management, product innovation, and the dedication and resilience of our team. VIP Clothing Ltd remains focused on providing top-quality fashion products that meet the ever-changing needs of our customers.
What is your current assessment of India’s textile industry?
Our assessment of India’s textile industry reveals a sector poised for both growth and transformation. Several key points are worth noting:
Challenges:
Global Competition: India faces stiff competition from other textile-producing countries. To maintain and expand market share, Indian textile companies must continually enhance their product quality and innovation.
Raw Material Price Fluctuations: The industry grapples with raw material price fluctuations, which can affect production costs and profitability.
Environmental Concerns: Sustainability is increasingly important, and the textile industry must address concerns related to water usage, chemical pollution, and sustainable sourcing of materials.
Growth Opportunities:
Sustainable Practices: There is a growing demand for sustainable textiles and clothing. Companies that adopt eco-friendly practices and offer sustainable products are likely to thrive.
Technical Textiles: The rise of technical textiles presents a promising opportunity. Applications in areas like healthcare, automotive, and sports are expanding.
Fashion Evolution: Consumer preferences are constantly evolving. Companies that stay attuned to these changes and offer products aligned with the latest fashion trends can capture a significant market share.
Exports: India’s textile exports continue to grow. By focusing on quality and international marketing efforts, Indian textile companies can tap into global markets more effectively.
Government Initiatives: Government initiatives such as ‘Make in India’ and the introduction of production-linked incentives (PLI) schemes are expected to boost domestic manufacturing and exports in the textile sector.
Key End-User Industries:
Apparel: The apparel sector remains a major driver of textile demand. Fashion-conscious consumers are consistently seeking new styles and designs.
Home Textiles: Demand for home textiles, including bedding, curtains, and furnishings, remains steady, with opportunities for growth in both domestic and international markets.
Technical Textiles: As mentioned earlier, applications in healthcare, automotive, agriculture, and other industries are driving demand for technical textiles.
In summary, while the Indian textile industry faces challenges, it also presents numerous growth opportunities. Sustainable practices, innovation, and adaptability will be key factors in the industry’s success.
What is the global standing of the Indian textile industry?
The global standing of the Indian textile industry is substantial, but there is room for improvement to enhance competitiveness on the international stage.
Strengths
Skilled labor: India possesses a vast pool of skilled labor, making it a strong contender for textile manufacturing.
Diverse product range: Indian textile manufacturers offer a wide range of products, from traditional fabrics to technical textiles, catering to a variety of industries.
Rich heritage: India has a rich heritage in textiles, which has been appreciated worldwide. Traditional craftsmanship, intricate designs, and hand-woven textiles continue to be valued.
Cost efficiency: India’s competitive advantage lies in cost-effective manufacturing. Labor costs are lower compared to many other countries, making it an attractive destination for textile production.
Exports: The Indian textile industry has a strong presence in global markets, with a significant share of the export market for textiles and apparel.
Areas for improvement:
Quality and innovation: To enhance global competitiveness, Indian textile manufacturers should focus on consistently delivering high-quality products and fostering innovation in design and technology.
Sustainability: As sustainability gains importance globally, Indian textile companies can benefit by adopting eco-friendly practices and promoting sustainable products.
Value addition: Moving beyond manufacturing, there is potential to add more value through branding, marketing, and creating unique fashion collections.
Infrastructure: Investments in modern infrastructure and technology can boost efficiency and quality in the textile manufacturing process.
Market diversification: While India is a significant player in textile exports, diversifying export markets can reduce dependence on specific regions.
Compliance and standards: Adhering to international quality and safety standards is crucial to building a positive global reputation.
India has the potential to become even more competitive globally by leveraging its strengths and addressing these areas for improvement. With a focus on quality, sustainability, and innovation, the Indian textile industry can continue to grow and capture a larger share of the global market.
Are government policies to boost the industry’s growth working on the ground? What else should the government do to propel growth?
Government policies aimed at boosting the textile industry have shown promise, but there is room for further improvement. Some key observations:
Positive Aspects:
‘Make in India’: The ‘Make in India’ initiative has encouraged domestic manufacturing and contributed to the growth of the textile sector.
Production-Linked Incentives (PLI): The introduction of PLI schemes for textiles and apparel has provided incentives for companies to expand and modernize their operations.
Ease of doing business: Initiatives to improve the ease of doing business, such as simplified regulations and digital processes, have been beneficial.
Areas for improvement
Simplification: Further simplification of regulatory processes, including compliance with quality standards, can reduce bureaucratic hurdles for businesses.
Infrastructure investment: Increased investment in infrastructure, including transportation and logistics, can improve supply chain efficiency.
Skill development: Continued emphasis on skill development programs can ensure a steady supply of skilled labor in the industry.
Sustainability: Government support for sustainable practices, such as eco-friendly manufacturing and waste management, can align the industry with global sustainability trends.
Market access: Trade agreements and diplomatic efforts to secure better market access for Indian textiles in key export markets are essential.
In summary, while government policies have been beneficial, a continued focus on simplification, infrastructure, skill development, sustainability, and market access can further propel the growth of the textile industry in India.
What kinds of trends are you seeing in the market at present? How is your company gearing up to tap these trends?
Current market trends in the textile industry include:
Sustainability: Consumers are increasingly seeking sustainable and eco-friendly products. This trend encompasses everything from sustainable sourcing of materials to environmentally conscious manufacturing processes.
Fashion evolution: Rapid changes in fashion preferences are driving demand for new styles and designs. Consumers are looking for trendy and innovative clothing options.
Technical textiles: The growth of technical textiles in industries like healthcare, automotive, and sports is creating opportunities for manufacturers to diversify their product offerings.
Online retail: E-Commerce and online shopping have become more prevalent. Companies are focusing on strengthening their online presence and optimizing customer experiences.
Customisation: Personalization and customization are gaining traction. Brands that offer tailored or customizable products are resonating with consumers.
VIP Clothing is gearing up to tap into these trends by:
Emphasising sustainability in our manufacturing processes and sourcing eco-friendly materials. Staying agile and responsive to changing fashion preferences, ensuring our product designs remains trendy and innovative. Exploring opportunities in the technical textiles segment to diversify our product range. Enhancing our online retail presence and optimising the customer experience. Exploring customisation options to provide personalised products to our customers.
What are your expectations & growth plans for FY24?
In FY24, VIP Clothing have ambitious growth plans and expectations:
Sales targets: We aim to achieve higher sales targets by expanding our market reach and offering a wider range of products.
Capacity expansion: We plan to invest in capacity expansion to meet growing demand and ensure timely delivery to our customers.
Exports: We are exploring new export opportunities to expand our global footprint and diversify our market presence.
Growth strategy: Our growth strategy revolves around sustainability, quality, and customer satisfaction. We will continue to innovate in our product offerings and manufacturing processes.
New product launches: VIP Clothing is considering new product launches to cater to evolving customer needs and preferences.
Product/business diversification: Exploring opportunities for diversification, including potential expansion into the outerwear market.
In summary, FY24 holds exciting prospects for VIP Clothing, with a focus on growth, sustainability, and innovation. We remain committed to providing top-quality fashion products and enhancing our market presence both domestically and internationally.
