The global denim market is growing at six per cent. The rise in disposable income levels is aiding the growth of the denim market. Other factors are the rise in urbanization and the trend of denim shirts. Further, the growing popularity of stretchable denim jeans by blending cotton with synthetic material is further anticipated to propel the growth of the denim market.

Moreover, initiatives to improve product manufacturing are estimated to cushion the growth of the denim market. In addition, the easy accessibility of raw material will further provide potential opportunities for the growth of the denim market.

On the basis of product, the denim market is segmented into jeans, jacketsand shirts, trousers, dresses, shorts and track pants, jumpsuits, dungarees and others.On the basis of consumer type, the denim market is segmented into men, women and children.On the basis of distribution channel, the denim market is segmented into specialty stores, department stores, online, hypermarket and supermarket and exclusive stores.On the basis of type, the denim market is divided into light denim, medium denim and heavy denim.

North America dominates the denim market. Asia-Pacific is projected to observe a significant amount of growth in the denim market due to the occurrence of major key players.

Known for its affordable cashmere, French apparel brand From Future has stepped into the denim space with a new collection made with sustainable materials. As per a Sourcing Journal report, the collection uses fabrics made of 74 per cent cotton, 25 per cent recycled cotton from fabric scraps and 1 per cent elastane, and dyes using a water and energy saving process that also requires fewer chemicals.

The women’s denims Ihis collection span the Joseph straight fit, Johnny slim fit and Jude bootcut. They are available in sizes 34-42 in light, medium and black denim, with a white denim option offered in the straight fit. The men’s denims span Joey straight fit, Josh loose fit, Jacob slim fit and Jack denim shorts in sizes 27-35. They are available in light, medium, dark and black denim washes.

The brand has introduced a Sizefox powered fit tool on its website’ to assist customers in choosing the correct size based on a short questionnaire. From Future’s denim collection is being sold in stores and online from €110 ($119) for women’s jeans and €120 ($130) for men’s jeans. The brand plans to introduce more denim styles soon. It plans to launch denim jackets, skirts and denim in a variety of fun colors like neon yellow, lilac and bubblegum pink.

Besides cashmere, the brand also offers an assortment of high-quality, color-saturated fabrics such as silk sourced from China, ‘ice wool,’ an extra-fine Australian Merino wool fiber, and 100 percent cotton, pima cotton and Supima cotton.

From Future’s foray into denim follows the recent entry of brands into the category. Last Month, Emma Mutholand in Holiday, the five-year-old Australian label best known for its cheerful, vacation-inspired style launched a capsule collection offering two unisex jeans styles. Prior to that, UK-based brand Rixo had launched a range of sustainable denim dresses and separates, followed by contemporary women’s brand Ulla Johnson, which ventured into denim after showcasing several jeans and a denim jacket at its F/W 22-23 presentation during New York Fashion Week.

As per a recent report by Research and Markets, the denim market will reach $76.1 billion by 2026, up from $57.3 billion in 2020. Its anticipated success can be attributed to the infiltration of the casualization movement into the workplaces, as well as younger professionals opting for more casual office attire.

In a letter to Sanjay Bandi, President, BJP Telangana, KT Rama Rao, Working President, TRS and State Textiles Minister criticized the Central government for introducing inefficient policies that have pushed weavers and textiles sector into a crisis. Rao urged the BJP President to remove GST on textiles to provide much-needed support to the weavers’ community.

The textiles minister also accused the Centre of removing all insurance schemes provided to weavers by the previous governments. The Telangana government is not only providing insurance coverage to the weavers but also supporting them by extending a scheme called Nethanna ku Cheyutha to these weavers and also them with subsidized yarn and other raw materials under Chenetha Mithra scheme. Rao also accused the Centre of not responding to the state’s request for establishment of a mega powerloom cluster, a national textile research institute and an Indian Institute of Handloom Technology in the state.

Debt-ridden Future Group faces an uncertain future as three of its companies, Future Retail, Future Lifestyle Fashions and Future Supply Chain Solutions, stand on the brink of insolvency. All three companies have a total outstanding debt of Rs 6,474.98 crore. Of this, the total debt of Future Retail stands at Rs 4,876.88 crore, Future Lifestyle Fashions’ debt totals Rs 1,181.98 crore and FSCS’ debts amounts to Rs 416.12 crore.

Amazon terms Future-Reliance deal ‘unethical;

As per media reports, in 2020, the Future Group had signed Rs 24,713 crore deal with Reliance Retail, a subsidiary of Reliance Industries. The deal entail Reliance Retail would buy out the wholesale, retail and logistics businesses of Future Group. However, the deal was opposed by US e-commerce company Amazon as it violated a 2019 agreement signed with the company. In mid-2019, Amazon had acquired 49 per cent stake in Future Coupons, giving it an indirect 4.81 per cent holding in Future Retail Ltd (FRL).

Impending bankruptcy threatens Future’s future deals

Last week, RIL refused to takeover Future Group’s businesses, as FRL’s secured creditors voted against the scheme. Bank of India also filed a bankruptcy petition against FRL before the National Company Law Tribunal (NCLT) that would come up for hearing for admission on May 12.

A bankruptcy trial before National Company Law Tribunal (NCLT), threatens Future Group’s future deals. Group stakeholders in the group are not sure of recovering the $4-billion debt from the company. The recent acquisition of important FRL stores by Reliance also thwarts Amazon’s ambitions to become a key player in India’s retail market.

Meanwhile Amazon has asked the RBI to undertake a forensic audit against Future Retail for the past three financial years to investigate alleged fraud by the company. Amazon said that Future Retail, its promotors and directors have defrauded by alienating over 945 store premises to Reliance Retail. It has also alleged that Reliance Industries has committed fraud while the lenders have failed to take cognizance of it.

“It is incumbent upon RBI to conduct a thorough investigation into the fraud committed by FRL, its promoters, directors and key managerial personnel (KMPs). Accordingly, it is requested that a forensic audit be conducted for FRL for the past 3 financial years as the RBI is empowered to inter alia under the RBI Fraud Circular, financial documents, and framework agreement,” Amazon has said. Amazon has also alleged Future Retail has been making contrary statements in its annual reports, and in the courts on whether it was facing a liquidity crisis or not. Amazon alleged that in its Annual Report for the financial year 2020-21, Future Retail stated that it did not face any liquidity crisis.

Liquidation may erode banks’ share in the company

Vivek Parti, Professional, Insolvency Resolution notes, with public sector banks rejecting the scheme of arrangement proposed by Reliance, Future Retail now faces liquidation under the Insolvency and Bankruptcy code. As per a Business Today report, to recover their dues, banks will have to fight it out or else they may get less than expected as the case moves to the IBC, opines Mahesh Singhi, Founder & Managing Director, Singhi Advisors, an M&A advisory firm.

Singhi advises lenders to have an alternative plan to recover their dues. Being a perishable industry, retail is an extremely challenging business to run, he says. The company has lost most of its employee and inventory. Besides, it does not own the property it operates on, he adds. Its insolvency may be just nine to 12 month away, he adds. As shareholders values continue to erode at break-neck speeds, banks will have to find a solution to minimize the extent of damage caused to them, opines Singhi.