Jeans Manufacturing Industry-759387 PDF
Jeans Manufacturing Industry-759387 PDF
Jeans Manufacturing Industry-759387 PDF
co
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Introduction
Jeans is one garment worn by people of all ages around the world that
needs no introduction today. Jeans has today become a type of trouser
that is seen in the wardrobe of most men and women across the world.
It has a universal appeal and a very youthful and rugged image. Jeans
is considered casual wear and worn by men and women outside
workplaces. Jeans are preferred by people over other formal trousers as
these can be worn without the need for press.
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Blue is the color that gives jeans their unique identity though today
they are available in many over dyed colors. They are durable and well-
insulated to wear comfortably in treacherous weather conditions.
Cotton (denim) is the fabric material behind the versatility and comfort
of jeans.
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Market Outlook
The global denim market was valued at $56,178.1 million in 2017 and
is forecasted to witness a CAGR of 5.8% during 2018–2023. Changing
Asian retail clothing industry and growing global e-commerce industry
buoyed the overall denim market. On the basis of product, the denim
market has been categorized into jeans, jackets and shirts, dresses,
and others, wherein others include tops and shorts. Of these, the
market for jeans is expected to continue holding the largest revenue
share, during the forecast period. This is attributed to high demand for
distressed and casual-wear globally, especially among the young
populace.
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The denim segment has always reigned as one of the leading segments
in the fashion industry. The blue denim has been a wardrobe staple and
a fashion essential for decades. In terms of pricing behaviour, the
growth is expected to be the highest in the Premium and Super
Premium categories of the denim products with smaller base numbers.
On the basis of segment, the denim market has been categorized into
mass market, standard, and premium. Globally, mass market segment
held largest revenue share in 2017, as majority of the populace prefer
high quality clothes at reasonable price. Customers demand for cost-
effective denim wear in addition to comfort is also boosting the market
growth. However, with growing westernization, mounting upper middle-
class population throughout the globe and rising number of high net
worth individuals (HNWI), the demand for premium denim market is
expected to witness fastest growth, during the forecast period.
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Global Denim Market, By Product, $M (2013 – 2023)
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On the basis of consumer type, the denim market has been segmented
into men, women, and children. Of these, men category is expected to
continue holding the largest market share, during the forecast period,
owing to heavy demand for casual-wear and rugged-material clothing
by men across the globe. Denim-wear has proved to be the go-to
clothing for men, who are widely adopting denim clothing for various
purposes, from casual-wear to work-wear and party-wear.
The Denim Jeans are one of the most significant part of the clothing &
apparel industry. The Denim jeans are mostly popular among the
youths. Increasing demand for denim jeans products is further
expected to impact the global market growth of denim jeans positively.
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There are many benefits of denim such as denim jeans provides you a
street style fashion to your lifestyle and adding leather boots make you
junky and give you a rough look, denims jeans are indeed very tough
and durable material and it is cost effective clothing to wear and stylish
at the same time.
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The denim market in APAC is expected to witness fastest CAGR of over
10%, during 2018–2023. The rising disposable income of people,
expanding base of working-class population, availability of ample
amount of raw materials and cost-friendly labor resources, as well as
increasing government initiatives in countries like India, China, and
Vietnam are the key factors contributing to the growth of market in the
region.
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Indian Denim Market
The market size of Indian Denim Wear was estimated to be Rs 20,205
crore in 2016. The market is now projected to grow at a CAGR of 14.5
per cent and reach Rs 39,651 crore by 2021, and Rs 77,999 crore
markets by 2026. The men’s denim segment comprises 84 per cent of
the market while the women’s denim segment and kids’ denim segment
comprise 10 per cent and 6 per cent respectively.
Denim makes up for a sizable share of India’s total textile exports and it
is expected that production may increase to 1.5 billion metres by 2020.
Indian denim industry is primarily aiming to increase its share in
exports, which currently pegged at 35% of production compared to
domestic consumption of remaining 65% of the produce.
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The ever-growing denim market in India is on a roll, feel leading jeans
manufacturers who credit evolved Indian customers and the influence
of global style trends for this change. An organized retail sector, young
population, online penetration of denims and increasing popularity of
engineered or distressed pieces will continue to fuel the growth of this
segment.
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Denim
Demand : Past and Future
Year (In Million Metre)
1990-91 13
2000-01 81
2001-02 94
2002-03 107
2003-04 121
2004-05 135
2005-06 150
2006-07 185
2007-08 210
2008-09 225
2009-10 270
2010-11 285
2011-12 325
2012-13 450
2013-14 490
2014-15 540
2015-16 590
2016-17 650
2017-18 690
2018-19 725
2019-20 775
2024-25 1180
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Men’s Denim Segment: Men’s denim enjoy the largest share and are
poised to grow at a high CAGR of 14 per cent over the next decade.
Until a few years ago, denim was popular with men in the urban cities
only, however, it has now gradually become popular in the semi-urban
and rural markets also. Growing awareness and an increasing affinity
for global fashion have led to this development. Denim is considered
the most versatile fabric for men with multiple applications over casual
wear, work wear and every day wear.
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The Indian Denim wear market is currently dominated by unorganised
players. However, with many private labels and international brands
entering Indian apparel market, the inclination towards branded denims
is increasing among consumers.
Denim industry like any other textile and clothing products is largely
fragmented. While the westerners were the major producers of denim in
yesteryears, now Asian manufacturers are contributing to about 50
percent of the world denim capacity. Most of the production in Asia is
generated primarily in China and India. Some of the capacity expansion
is taking place in the countries like Bangladesh, Indonesia, Pakistan
and Turkey. There are several thousands of companies targeting
specific customer segments for increasing their market shares.
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The demand of denim jeans from the Asia-Pacific region is dominated
by countries like India and China. The western style of dressing has
influenced the dressing style in these countries and is expected to
continue influencing resulting in increased growth of denim wear in
these countries for the coming years. The most preferred brands of the
middle class community in the Asian countries are expected to be the
high-end designer labels along with mid-priced well established
international brands. Constant increase in the prices of cotton is a
matter of concern for the manufacturers and marketers in the denim
jeans market. The manufacturers in the industry are increasingly
shifting focus on developing strategies to deal with these price hikes.
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The denim jeans market is part of the retail industry of India in the
apparels & accessories segment, and is thus gaining growth as a result
of developments in the retail industry.
The Indian denim industry has shown continual growth over the years
and currently the country boasts of a denim manufacturing capacity of
around 1.1 billion metres per annum. Its utilization levels are pegged at
80-85%. Despite the impressive statistics, the Indian denim
manufacturing industry contributes ~5% to the global scenario,
reflecting the overall performance of the textiles industry.
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Machinery Photographs
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Project at a Glance
PROJECT AT A GLANCE (` in lacs)
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Project at a Glance
Year Annualised Book Debt Dividen Retained Payout Probable P/E Yield Price/
Value d Earnings Market Ratio Book Value
Price
No.of
Per Times
EPS CEPS Per Share Share Per Share
` ` ` ` ` % ` % ` %
1-2 6.42 8.58 16.42 24.00 0.00 100.00 6.42 0.00 6.42 1.00 0.00
2-3 9.24 11.15 25.66 18.00 0.00 100.00 9.24 0.00 9.24 1.00 0.00
3-4 11.98 13.68 37.64 12.00 0.00 100.00 11.98 0.00 11.98 1.00 0.00
4-
5 14.62 16.13 52.26 6.00 0.00 100.00 14.62 0.00 14.62 1.00 0.00
5-
6 17.15 18.50 69.40 0.00 0.00 100.00 17.15 0.00 17.15 1.00 0.00
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Project at a Glance
Year D. S. C. R. Debt / Equity Total Return Profitability Ratio Assets Curre
- as- Net on Net Turnov nt
Deposi Equity Worth Worth er Ratio
ts Debt Ratio
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Project at a Glance
BEP
BEP - Maximum Utilisation Year 5
Cash BEP (% of Installed Capacity) 45.82%
Total BEP (% of Installed Capacity) 48.39%
IRR, PAYBACK and FACR
Internal Rate of Return .. ( In %age ) 25.05%
2 Years 4
Payback Period of the Project is ( In Years ) Months
Fixed Assets Coverage Ratio ( No. of times ) 2.854
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Major Queries/Questions Answered in the Report?
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5. What is the structure of the Jeans Manufacturing
Business and who are the key/major players ?
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9. Who are the Suppliers and Manufacturers of Plant
& Machinery for setting up Jeans Manufacturing
plant ?
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13. What is the total size of land required for setting up
Jeans Manufacturing plant ?
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18. What are the Personnel (Manpower)
Requirements for setting up Jeans Manufacturing
Business?
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23. What are the Profitability Ratios of Jeans
Manufacturing Project?
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27. What are the Market Opportunities for setting
up Jeans Manufacturing plant?
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1. PROJECT PROFILE
2. INTRODUCTION
3. HISTORY
4. B.I.S. SPECIFICATION
4.1. IS: 2364 – 1987–Glossary of Textile Terms-Woven Fabrics (Second Revision)
4.2. IS: 15798 – 2007–Textiles—Requirements for Labelling and Marking of Consumer
Textiles — Specification
7. MARKET SURVEY
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7.1. Denim and Jeans
7.2. Newly Emerging Indicators
7.3. Market Structure
7.4. Leading Brand
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8.7.10. Profits
8.7.11. Return Ratios
8.7.12. Structure of Assets & Liabilities (%)
8.7.13. Working Capital & Turnover Ratios
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14. DENIM DYES
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Project Financials
• Project at a Glance Annexure
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• Plant & Machinery……………………………………………..……..5
Indigenous Machineries
Other Machineries (Miscellaneous, Laboratory etc.)
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• Overheads Required Per Month and Per Annum………….…….…8
Utilities & Overheads (Power, Water and Fuel Expenses etc.)
Royalty and Other Charges
Selling and Distribution Expenses
• Share Capital…………………………………………………….....11
Equity Capital
Preference Share Capital
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• Annexure 1 :: Cost of Project and Means of Finance
Revenue/Income/Realisation
Expenses/Cost of Products/Services/Items
Gross Profit
Financial Charges
Total Cost of Sales
Net Profit After Taxes
Net Cash Accruals
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• Annexure 3 :: Assessment of Working Capital requirements
Current Assets
Gross Working Capital
Current Liabilities
Net Working Capital
Working Note for Calculation of Work-in-process
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• Annexure 5 :: Projected Balance Sheets
D.S.C.R
Earnings Per Share (EPS)
Debt Equity Ratio
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• Annexure 7 :: Break-Even Analysis
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• Annexure 8 to 11 :: Sensitivity Analysis-Price/Volume
Resultant N.P.B.T
Resultant D.S.C.R
Resultant PV Ratio
Resultant DER
Resultant ROI
Resultant BEP
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• Annexure 12 :: Shareholding Pattern and Stake Status
Equity Capital
Preference Share Capital
• Annexure 13 :: Quantitative Details-Output/Sales/Stocks
Determined Capacity P.A of Products/Services
Achievable Efficiency/Yield % of Products/Services/Items
Net Usable Load/Capacity of Products/Services/Items
Expected Sales/ Revenue/ Income of Products/ Services/
Items
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• Annexure 14 :: Product wise Domestic Sales
Realisation
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• Annexure 21 :: Employees Expenses
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• Annexure 29 :: Depreciation Charges – as per Books (Total)
• Annexure 30 :: Depreciation Charges – as per Books (P &
M)
• Annexure 31 :: Depreciation Charges - as per IT Act WDV
(Total)
• Annexure 32 :: Depreciation Charges - as per IT Act WDV
(P & M)
• Annexure 33 :: Interest and Repayment - Term Loans
• Annexure 34 :: Tax on Profits
• Annexure 35 :: Projected Pay-Back Period and IRR
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Reasons for Buying our Report:
size, market potential of the product and reasons for investing in the
product
• This report helps you market and place the product correctly by
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• This report helps you understand the viability of the project by
decisions
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Our Approach:
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Scope of the Report
The report titled “Market Survey cum Detailed Techno Economic
Feasibility Report on Jeans.” provides an insight into Jeans
market in India with focus on uses and applications,
Manufacturing Process, Process Flow Sheets, Plant Layout and
Project Financials of Jeans project. The report assesses the
market sizing and growth of the Indian Jeans Industry. While
expanding a current business or while venturing into new
business, entrepreneurs are often faced with the dilemma of
zeroing in on a suitable product/line. And before
diversifying/venturing into any product, they wish to study the
following aspects of the identified product:
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• Good Present/Future Demand
• Export-Import Market Potential
• Raw Material & Manpower Availability
• Project Costs and Payback Period
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