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denim by Turkey
By Dr. Noor Ahmed Memon
In the last decade weaving of denim fabrics has Table 1: Pakistan is major denim manufacturer and exporter
undergone dramatic changes with a view to improv-
ing the comfort level and aesthetic aspects. On the S.No Company Name S.No Company Name
other hand export of cotton denim fabrics from
Pakistan increased from 45 million sq meters worth 1 Siddiqsons Denim Mills Limited 21 Artistic Milliners Pvt (Garments)
Rs 4.37 billion in 2005-06 to 229 million sq meters 2 Pak Denim Limited 22 Artistic Fabric mills (Garments)
worth Rs 20.49 billion in 2009-10, thus showing an 3 Al-Ameen Denim Mills Limited 23 Soorty Denim
average increase of 74% per annum in terms of
value. 4 Artistics Denim Mills Limited 24 Siddiqsons Industry (Garments)
Due to a series of advantages including a falling 5 Mekotex Pvt Ltd 25 Kam International (Garments)
currency, cotton fiber and yarn availability, modern 6 X Pertex Denim Mills Ltd 26 Rana Tex
equipment and strong incentives have progressively
7 Kassim Textile Mills Ltd 27 Rana Textile Mills (Garments)
built a wealthy denim industry, allowing developing
denim apparel production and direct denim fabric 8 Baig Spinning Mills Limited 28 Noor Fashion (Garments)
exports to other Asian countries and also to Turkey. 9 S.M Denim Mills Ltd. 29 Naveena Denim
Textile sector is the backbone of Pakistan’s econ-
10 Naveena Exports (Pvt.) Limited 30 Naveena Denim II
omy and contributes significantly to the export
sector. It comprises of 521 textile units. Pakistan is 11 Abbas Spinning & Weaving 31 U.S. Apparel Pvt Ltd
the fourth largest producer of cotton and third 12 Rana Textile Mills Limited 32 U.S. Apparel & Tex (Garments)
largest consumer. It contributes 8.5% to the GDP
13 Marfani Denim Mills 33 U.S. Emporio (Garments)
and employs 38% of the workforce in the manufac-
turing sector. Its share to the total export is about 14 Denim International 34 S.M. Traders (Garments)
56%. It is ranked 12th in the global textile exports. 15 Rajby Industries 35 Rajwani Apparal Ltd (Garments)
Despite facing numerous challenges due to persist-
Weaving
ent power crisis, high cost of doing business, poor 16 Classic Denim 36 Vipatex Industries (Garments)
law and order situation and host of other issues, 17 Azgard 9 Ltd 37 Hantex Textile Ltd
Pakistan’s textile exports managed to grow by 3% 18 PDL Fashion (Garments) 38 Mr Denim Ltd
during the year 2009-10 as against the exports of
last year. 19 Indus Denim 39 Karim Denim Mills
Pakistan had always strong textile industry due 20 Crescent Bahuman (Garments) 40 AGI Casual Sports
to historical reasons and an abundance of cotton Source: Pakistan Denim Manufacturers and Exporters Association
fibre grown in the country. Denim is the mainstay of
Thus denim fabric is not a final retail product. It is an interme-
the Pakistani textile industry along with home textiles. Denim is
diate product which requires another party to perform further
more than just a cotton fabric; it inspires strong opinions within
manufacturing tasks before it reaches the final consumer in the
the hearts of historians, designers, teenagers, movie stars, this
form of denim garments.
diversity of the denim garments has made its demand increasing
exponentially. The denim component has been developing the fastest in the
last decade – with Pakistan touching almost 600 million sq meters
The denim fabric is an intermediate product in the supply
of denim fabric production per annum. There are about 40 major
chain of denim garments. It is not purchased by the final cus-
players in the denim industry of Pakistan, some of them like
tomers. Instead the buyers of denim fabric are buying houses and
Artistic Fabric Mills, Pak Denim Limited, Al-Ameen Denim Mills
garment manufacturers. These manufacturers procure denim
Limited, S.M Denim Mills Ltd, Denim International, Classic
fabric from the denim manufacturers based upon their require-
Denim, Rajby Industries etc producing about 50 million sq meters
ments and specifications. This is then further processed and cut,
of finished denim fabrics monthly. Pakistan major denim manu-
sewn and finished into finished garments. These garments are
factures and exporters are given in Table-1.
then marketed to the final consumers.
The weaving sector in Pakistan by and large is paying keen
Table 2: Facts about Pakistan cotton attention to the remarkable success of the denim sub sector. The
denim industry apparel industry of Pakistan directly benefits from the new devel-
No. of major units 40 opments in the denim adding much higher value to the textiles
Denim fabrics production: produced in Pakistan. The denim sector though much smaller in
600 Million Sq. Meters terms of magnitude is leading the way for the entire industry.
(Per annum)
Cotton cloth production: Presently in Pakistan, denim production is on top in textile
1,009 Million sq Meters sector due to export and garments industry Denim is now one of
(mill sector)
the key apparel sectors and the driving force behind the apparel
Exports: (2009-10) 22.9 Million sq. Meters
exports of the country. In this scenario Pakistan has emerged as a
Share of cloth production: 60% key supplier of this highly demanded fabric due to the competi-
Main export markets: Bangladesh 31.2% tive prices.
(2009-10) Turkey 62.3% Price of denim fabrics are contracted at the beginning of the
(in terms of value) Egypt 7.7% cotton season, with a volatility of 10%-15% taken in to account,
Weaving
Levi Strauss made up first heavy brown canvas denim fabric exports. The only exception was Pakistan, whose exports
1873 rose by a remarkable 75% during the year 2009-10. On the other
in San Francisco for Californian miners.
hand export of cotton denim fabrics from Pakistan increased from
1883 Adolf von Baeyer obtained first indigo patent. 45 million sq meters worth Rs 4.37 billion in 2005-06 to 229 mil-
Denim under the name ‘501 Indigo’ produced by Levi lion sq meters worth Rs 20.49 billion in 2009-10, thus showing an
1890s average increase of 74% per annum in terms of value. Exports of
Strauss.
denim fabrics from Pakistan are given in Table-4. Turkey,
1897 -1901 Synthetic indigo was commercialized (Indanthrene). Bangladesh, Italy, Egypt and Hong Kong are the main markets for
cotton denim fabrics. These markets demand high product stan-
1950 First zipper jeans commercialized.
dards and in return offer higher unit price realizations. Country
Celebrities like Marion Brando, James Dean vouched wise export of cotton denim fabrics is given in Table-5.
1954
jeans.
Problems
Burlington took up the production of heavy denim
1962
14.75 oz/yd2 on projectile looms. The poor quality lint has such a substantial impact on denim
fabric production that the lint-to-yarn conversion ratio of
1970 Rotor yarns were used in weft direction.
locally ginned lint is only 83% compared to 90 %for
1974 commercialization of pre-wash denims. imported lint.
The cost of business operations in Pakistan is considerably
1978 Development of stone wash process. higher than in the competing countries such as India and
1980 Rotor yarns were used in warp direction. China.
Denim fabric requires cotton as a major raw material. The
1986 Development of chemical wash. denim fabric comprises of about 95% of cotton. So, the
1987 Development of super blue indigo denim. major part of the cost is the cost of cotton yarn. Cost of other
materials includes cost of dyes, finishes and chemicals etc. In
1992 Soft denim and reverse denim was launched. general, if the price or cost of raw materials increases, the
overall cost of the denim fabric would increase.
1993 Launch of Earth Wash Denim.
Political stability is of great importance. Foreign buyer look for
1994 Launch of Soda-Pop denim. consistency in dead line which is only possible if the manufac-
turing country is politically stable. Changes in policies hinder
1995 QuickStone, Retrodyeing methods launched.
the buyers’ prospects.
1997 Laser fading of denim is introduced.
Challenges
2004 Levi Strauss closed down the factories in USA.
Currently, the denim producers are not focusing on research
Source: D. Saravanan - Denim: Creating Blue Magic, The Indian and development. Traditional method of design and produc-
Textile Journal, July 2006. tion are being employed. New finishing and coloring tech-
of Pakistani textiles with effect from July All others 149,647 9,732 20,881 1,970 10,821 1,531
24, 2011. As per the decision, Turkey will Total 22,879 20,490 117,960 11,707 84,066 8,040
impose an additional 18% customs duty on
imports of denim fabrics from Pakistan, Source: Federal Bureau of Statistics, Government of Pakistan.
taking the total duty to 24.5%. Pakistan
has progressively built a strong denim industry over the years. 24.5% on denim fabric and 24.4% on woven fabrics, which will
seriously affect Pakistani exports.
The Turkish textile and clothing industry is one of the engines
of the Turkish economy, with combined exports together Pakistan’s overall textile export to Turkey were around $350
accounting for 18% of the country's total exports in 2009. million with a major chunk of cotton fabrics and Turkey was the
Clothing industry shipments were worth US$12.9 billion in 2009. third largest customer of Pakistani textile products after the US
Turkey is also ranked the 7th largest of the world's 70 cotton and EU.. Rise in import duty would definitely be a very big loss for
growing countries, with a capacity of 370,000 tonnes of annual the fabric industry which was having excellent growth and many
production. According to WTO statistics, in 2008 the Turkish suppliers have established their offices.
clothing industry was ranked fourth in world trade, with a share Pakistan’s economy was heavily dependent on textile sector,
of 3.8%. It was also ranked the second biggest supplier to the EU, which was not only the largest job providing industrial sector but
with a share of 12%. The EU countries (EU-27) account for nearly
was also contributing maximum share in the export. The Turkish
80% of Turkey's textile and clothing exports. Some major mar-
move would exacerbate troubles of the textile industry that has
kets for Turkish clothing exports are Germany, the USA, England,
already been affected by power cuts.
France, the Netherlands and the Russian Federation.
The Pakistan Textile Exporters Association (PTEA) has
The Pakistan apparel segment is the highest value added link
expressed concern over increase in custom tariff on Pakistani tex-
in the entire textile value chain. The trade in the sector accounts
for 53% of the total value of global textiles trade and is consis- tiles by the Turkish government. PTEA Chairman Wasim Latif said
tently growing since the last two decades. Denim has now well that increased custom duties would jeopardize exports of gar-
established as a high fashion fabric contrary to its traditional ments, home textiles and fabrics to Turkey.
image of a fabric suitable for rough and functional usage. On the other hand Muhsin Ayub, a former Chairman of
Pakistan is a major Asian player in the garment export market. Pakistan Readymade Garments Manufacturers and Exporters
The importance of the apparel sector in the overall economic per- Association (PRGMEA said that the anti-dumping duty is imposed
spective is two folds. On the one hand the sector has the poten- on textile export by Turkish government will directly hit the over-
tial to be the engine of Pakistan textile export growth, while on all export growth. Presently the country needs huge foreign
the other the sector is the largest source of creating low cost exchange and these steps will result in decline in exports. It may
employment in the country at all levels. be noted that the government in August last year had unveiled
Pakistan would suffer major loss in terms of lower textile the first-ever five-year National Textile Policy, setting the export
exports consequent to Turkey's decision to impose 18% addi- target of $25 billion and envisaging comprehensive measures to
tional custom duty on imports from Pakistan, The Turkish govern- boost production besides incorporating strategies to address the
ment has enhanced custom duties of 52% on Pakistani garments, challenges confronting the sector on sustainable basis.