Gujarat is set to strengthen its position further as the denim hub of India with around 150 million meters per annum (mmpa) new manufacturing capacity added by 2020.This will be in addition to the existing capacity of 500 mmpa.

Denim production capacity is set to cross 1.5 billion meters per annum in the country. Taking into account projects which are being expanded, and new projects that are coming up, around 300 mmpa of denim capacity is likely to be added during the next four years in the country. Out of this, around 50 per cent will take place in Gujarat alone.

Around four or five new units are coming up in and around Ahmedabad which will add 50 mmpa of capacity . Surat too has six units of denim manufacturing with a capacity of 100 mmpa. These firms plan to add another 30 mmpa in the next few years. The denim industry in India has a healthy growth rate of 1518 per cent per annum. Currently the feasible production capacity is a billion meters per annum considering a 85 to 90 per cent utilisation. Looking at the domestic demand, India will need to double its denim capacity by 2020.