Vishal Fabrics looks to tap denim markets in Europe, Latin America & Africa

Denim category has been growing at 10 per cent CAGR in India.
| Photo Credit:
Akespyker

Looking to ride the denim wave, Vishal Fabrics Ltd, a Gujarat-based manufacturer and processor of denim fabrics, is eyeing exports to Europe, Latin America and African markets.

The company, which is part of the Chiripal Group, has a capacity to manufacture 100 million metres per annum of denim and currently exports only to Nepal and Sri Lanka.

“We are not fully involved in the export market. This is one area where we are yet to grow. We currently export small quantities to Nepal and Sri Lanka. These are not good markets as far as price points are concerned. What we are now focussing on, is exporting to Portugal in Europe, Panama in South America, Kenya and Morroco in Africa, and Bangladesh. We have already started getting orders from Bangladesh,” said Suketu Shah, Business Head (Denim), Vishal Fabrics Ltd.

The company  targets to export 5 lakh metres of denim this year. “I have seen nine cycles of denim. Everytime the cycle nosedives, it feels that denim will get obliterated. But it goes up. We are currently witnessing an upswing and the going is expected to be good for denim for the next two years,” added Shah, an industry veteran who joined the company in January this year. 

Denim category has been growing at 10 per cent CAGR in India. Over the years a number of players have entered this category leading to a rising volume. Today, India has a denim manufacturing capacity of 1,700 million metres per annum and the production has never gone over 1,200 million metres. In other words, 60-65 per cent capacity has only been utilised. At Vishal Fabrics, we have a capacity utilisation of almost 85-90 per cent the official said, adding that the company sold ₹650 crore worth of denim fabrics in FY25 and is now targeting to sell ₹850-1,000 crore during the current fiscal.

Pointing out that even the domestic market in India presents a huge opportunity, Shah said that the per capita consumption of denim in India is less than one garment, while the per capita consumption in countries of Europe or the US is as high as 4-6 garments. In the domestic market the company is looking to tap denim brands located in Mumbai and Bengaluru.

“Only five per cent of our production goes to brands. Now we are looking to tap national brands in Mumbai which include Killer, Spykar, Pepe and Mufti. We will first introduce ourselves to the brands in Mumbai and then take a leap to Bengaluru which is a hub for denim brands,” Shah said, adding that the younger population in the age group of 25-35 still drives the denim growth.

Most of the denim sales for the company is coming from the north and eastern parts of the country. While these two regions account for 55 per cent of the sales, the western region accounts for 35 per cent of the denim fabric sales.

Published on June 5, 2025