Weaving

Pakistan cotton denim fabrics hold the highest potential for growth
by Dr. Noor Ahmed Memon.
Export of cotton denim fabrics from Pakistan increased from 263 million sq. meters worth Rs26.77 billion in 2010-11 to 320 million sq. meters worth Rs.35.34 billion in 2011-12, thus showing an increase of 32% in terms of value. The major markets during 201112 were Bangladesh, Turkey, Egypt, and Colombia. Pakistan has a strong textile industry due to historical reasons and an abundance of cotton fibre grown in the country. The denim component has been developing the fastest in the last decade touching almost 600 million square meters of denim fabric production per annum. There are about 40 major players in the denim industry of Pakistan. Some of them, like Artistic Fabric Mills, Pak Denim Limited, Al-Ameen Denim Mills Limited, S.M Denim Mills Ltd, Denim International, Classic Denim, Rajby Industries, etc. are producing about 50 million square meters of finished denim fabrics monthly. The weaving sector in Pakistan by and large is paying keen attention to the remarkable success of the denim sub sector. The apparel industry of Pakistan benefits directly from the new developments in the denim, adding much higher value to the textiles produced in Pakistan. The denim sector, though much smaller in terms of magnitude, is paving the way for the entire industry.

In Pakistan, denim production is on top in textile sector due to the export and garments industry Denim is now one of the key apparel sectors and the driving force behind the apparel exports of the country. The denim fabric is an intermediate product in the supply chain of denim garments. It is not purchased by the final customers; instead, the buyers of denim fabric are buying houses and garment manufacturers. These manufacturers procure denim fabric from the denim manufacturers based upon their requirements and specifications. This is then further processed and cut, sewn and transformed into finished garments. These garments are then marketed to the final consumers. Thus denim fabric is not a final retail product. It is an intermediate product which requires another party to perform further manufacturing tasks before it

reaches the final consumer in the form of denim garments. Denim was traditionally coloured blue with indigo dye to make blue "jeans," though "jean", then denoted a different, lighter cotton textile. Common uses included overalls made of blue denim, worn by mechanics and painters. Common uses included topcoats, vests or short jackets, and fine trousers in chestnut, olive, black, white and blue jean. Denim accounts about 3% of world fabric production. In the 1990s, twothirds of all denim cloth produced in the world was woven on Sulzer Ruti Projectile weaving machines. Air-jet looms consume fewer raw materials and less maintenance compared to the projectiles. About 56% denim fabrics are produced using projectile looms and 29% in air-jet and 15% in rapier weaving. Today, major denim producers around the globe are operating air-jets.

Table 1: World export of Blue Denim Apparel

(Qty : 000 Doz Value: US $ Million)

Table 2: World export of Blue Denim Trousers (Mens / Boys)

(Qty : 000 Doz Value: US $ Million)

Country

2012 (Sept.) Qty 9,287 7,293 4,101 1,221 1,233 8,298 Value 866 760 309 127 112 814

2011 Qty 12,579 10,606 5,483 1,893 1,486 11,462 43,509 Value 1,229 1,111 406 192 138 1,168 4,244

2010 Qty 16,055 11,363 6,860 2,312 1,804 13,057 51,451 Value 1,348 1,018 405 191 133 1,155 4,250 Country

2012 (Sept.) Qty 6,543 Value 658

2011 Qty 8,972 2,694 3,575 1,498 909 5,253 22,901 Value 892 297 273 131 80 587 2,260

2010 Qty 9,267 4,134 4,406 1,037 1,195 5,984 26,023 Value 786 374 264 76 84 568 2,152

China Mexico Bangladesh Egypt Pakistan All others World

Source: PRGMEA.

31,433 2,988

Mexico China Bangladesh Netherlands Pakistan All others World

Source: PRGMEA.

2,014 202 2,567 192 890 82 567 46 3,709 415 16,290 1,595

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Weaving
Table 3: Export of Cotton Denim fabrics
Year 2007-08 2008-09 2009-10 2010-11 2011-12 Qty (000 Sq mtrs) 84,066 117,960 228,879 263,263 320,116 Value (Rs in Million) 8,040 11,707 20,490 26,771 35,341

present market situation does not allow the global players in the denim to increase consumer prices and therefore they have to absorb the price increases from denim fabric producers worldwide.

Source: Federal Bureau of Statistics, Government of Pakistan

Denim fabric is unique in its connection with one colour - blue. The warp yarn is traditionally dyed with the blue pigment obtained from indigo dye. In a twill weave (used in denim), the fabric is constructed by interlacing warp and filling yarns in a progressive alternation which creates a diagonal effect on the face, or right side, of the fabric and has a surface of diagonal parallel ridges. The top world blue denim apparel exporting countries are China, Mexico, Bangladesh, Egypt and Pakistan. Together, these countries account for as much as 73% of world blue denim apparel exports. Almost all of these countries witnessed an increase in their blue denim apparel exports during the period 2010 to 2012. Statistics regarding the world export of blue denim apparel are given in Table-1. The importance of the apparel sector in the overall economic perspective is two fold. On the one hand, the sector has the potential to be the engine of Pakistan textile export growth, while on the other, the sector is the largest source of creating low cost employment in the country at all levels. World export of blue denim trousers (Mens and Boys) are given in Table-2. Denim is now well established as a high fashion fabric, contrary to its traditional image of a fabric suitable for rough and functional usage. Export of cotton denim fabrics from Pakistan increased from 84 million square meters worth Rs8.04 billion in 2007-08 to 320 million square meters worth Rs35.34 billion in 2011-12, thus showing an average increase of 68% per annum in terms of value. Export statistics of cotton denim fabrics from Pakistan are given in Table-3. Denim is now one of the key apparel sectors and the driving force behind the apparel exports of the country. The global recession, in fact, did not impact the denim industry in Pakistan. The

In this scenario Pakistan has emerged as a key supplier of this highly demanded fabric due to the competitive prices and in house innovations by the denim manufacturers in Pakistan. Bangladesh, Turkey, Egypt, Sri lanka and Colombia are the major markets for denim fabric exports from Pakistan. With about 126 million sq. meters of denim fabric being exported to Bangladesh in 2010-12, it is a major market for Pakistan. However, export is going to be severely affected with Turkey increasing duties on imports from 24th July 2011. This step taken by Turkey is going to affect the denim mills in Pakistan.

to certain standards and regulations. The firms considering these standards and certifications are at a competitive advantage. 3. The world buyers and markets have transformed themselves as ecofriendly and concerned organizations. It is imperative for the denim industry to ensure compliance with environmental standards and labour standards which are decided in accordance with international codes and agreements. 4. The continuously depreciating currency of Pakistan has helped in maintaining the competitiveness of the industry but it is not a factor which can sustain the industry in the long run. Some mills in Pakistan have definitely tried to invest heavily in product development and innovation and this is probably the best way to maintain the industrys performance and progress in the coming years.

India is becoming an important Reference market for Pakistani denim fabrics. Though the quantities of about 2.1 1. S. Sangita and P. Siva Kumar Types million meters in 2011-12 are still small, of stone wash and their effects on it is indicative of the potential of the denim fabrics The Indian Textile Indian denim market and it seems that it Journal. will become more important in the 2. Dr. N. Gokarneshan Denim like coming years. Both the garment effect in Knitted fabrics-The Indian exporters, from India as well as the local Textile Journal. brands, are becoming important in India 3. Pakistan Readymade Garments as they are getting more aggressive and Manufacturers and Exports to differentiate themselves, they buy Association (PRGMEA). fabrics from around the world Italy, 4. Federal Bureau of Statistics, Turkey, Spain and with Pakistan Government of Pakistan. becoming an important supplier to service their export Table 4: Country-wise export of cotton market. Country-wise export denim fabrics of cotton denim fabrics from Qty: (000 Sq. mtrs) Value: (Rs million) 2011-2012 2010-11 Pakistan is given in Table-4.
Country

Challenges
1. Regional competition from China, Bangladesh and India threatens Pakistani denim prospects. China has a competitive advantage on cost and price due to subsidized power and economies of scale. On the other hand, Bangladesh has an advantage due to various trade agreements and tariff relaxations. 2. The world buyers and markets demand compliance

Qty

Bangladesh 126,072 Cambodia 11,068 Egypt 23,938 2,438 Germany 5,274 Hong Kong 3,097 India 8,414 Italy 3,762 Lesotho 6,095 Morocco 9,439 Peru 837 Poland Sri Lanka 12,638 Turkey 50,628 6754 Vietnam All others 49,662 Total 320,116

Value 13,348 1,229 2,827 281 652 350 956 467 701 990 91 1,341 5,534 921 5,653 35,341

Qty 45,431 4,592 10,262 1,722 3,364 5,374 11,639 3,673 1,893 4,884 1,534 8,426 126,331 1,438 32,700 263,263

Value 6,238 402 1,108 176 302 265 1,116 358 207 524 155 902 11,284 174 3,560 26,771

Source: Federal Bureau of Statistics, Government of Pakistan.

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