"Cotton pricing policy is impacting our growth"

B. Vijayaragavan Managing Director, B. S. Apparel

"Cotton pricing policy is impacting our growth"

B. Vijayaragavan, MD, B.S.Apparel TDB: What is that unique feature that makes T-shirts manufactured by your company stand out in the crowd? BV: Two years of natural fibre research and textile engineering research went into our products. Our research revealed that viscose produced from bamboo was an ideal alternative to polyester. Among the many disadvantages of polyester are the lack of comfort and flexibility. Our T-shirts are made from an amalgamation of 50% cotton and 50% viscose. The Bamboo Performance Technology combines the best of nature with a patent pending finishing process – Bamco – to release the innate performance characteristics that exist in the fibre. Our products have the inherent properties to regulate temperature, absorb moisture rapidly and allow superior breathability. Apart from these features, they are exceptionally soft and extremely light and odour-free. Our products are categorised as UPF 50+ (Ultraviolet Protection Factor). A garment with a UPF of 50 only allows 1/50th of the UV radiation falling on the surface of the garment to pass through it. In other words, it blocks 98% of the UV radiation.

B. Vijayaragavan
Managing Director, B. S. Apparel

TDB: What is your actual production capacity and which are the biggest export destinations for your T-shirts? BV: Our output is between 70,000 – 100,000 pieces per month. About 90% of our products are exported to United States. About 7% of the orders are from Europe. There is a great demand for our products in the sporting fraternity because of their flexibility and sweat absorbing capability. TDB: At what price do you sell your T-shirts and what is the tag attached to the same in United States? BV: On an average, our FOB price is about $7.5 per T-shirt. The same is sold in American retail outlets at almost six times the selling price, i.e., around $50. TDB: Are there any grey areas in terms of government policies and support which are affecting the earnings performance and productivity of the industry? BV: There are some major factors that are affecting and impacting our growth. It is quite strange and ironical that despite India being the second largest producer of cotton, domestic garment industry has to procure cotton at a price which is higher than that in the international markets. I do not see any logic for this over-pricing. My products are made of 50% cotton and the rest is viscose churned out of bamboo. There is munificent bamboo resources in India, but there is a ban on the use of bamboo. So again, we have to rely on imported viscose. We have opted for viscose from bamboo as an alternative for polyester. Reliance Industries has monopoly over polyester fabric and its pricing. Here in India, polyester is priced higher than that in international markets. Even if we have to import polyester fabric, there is a catch. Government has imposed anti-dumping duties on import of polyester. This means we either procure from the Indian markets at a higher price or purchase it from the international markets by paying anti-dumping duties. Most of the garment manufacturers are subjected to these problems, resulting in high cost of production.

"Cotton pricing policy is impacting our growth"

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