Artistic Milliners Details Denim’s ‘Explosive’ Demand & ‘Renaissance’ in Pakistan
Pakistan has become one of the largest suppliers of denim for the United States market, placing fourth in 2021 behind Bangladesh, Mexico and Vietnam. Between 2020 and 2021, Pakistan’s exports of denim garments to the U.S. rose from $251.7 million to $389.8 million, a year-over-year growth of 43 percent.
As one of the largest denim exporters in Pakistan, Artistic Milliners has seen this upswing firsthand. And the Karachi-based manufacturer is banking on innovation, sustainability and expansion to drive further growth.
Carved in Blue spoke with Artistic Milliners CEO Omer Ahmed and managing director Murtaza Ahmed to get the scoop on what is driving Pakistan’s denim growth and the future for their company.
Carved in Blue: Could you provide a brief overview of your mill?
Omer: First off, we see ourselves as more than just a mill; we consider ourselves as a convergence of vertical manufacturing, driven by the engine of conscious production that produces everything from 36 million garments, 108 million meters of denim fabric annually, 9 million pounds of yarn monthly and 100-plus MW of clean energy in service of steering our industry into the future. We’ve obviously expanded our suite of solutions across the planet over the last two years, starting Star Fades International (SFI), our Los Angeles-based custom wash and finishing facility to a diverse customer lineup. The global footprint also includes Artistic Energy, Artistic Lab, Soho Incubator in New York and now Artmill, our first foray into premium wovens. This hunger for excellence is what has kept us growing since our founding in 1949.
Carved in Blue: How would you describe the development of Pakistan’s denim industry in recent decades?
Murtaza: I’d say it’s been nothing short of a renaissance, especially recently. Some of the biggest drivers have been this long-term buildup of investment and clustering of infrastructure. It’s been a long road for the industry but sustained progress in the pursuit of better quality, competitive pricing and conscious production. This has paid off in spades because we’re now both a top five exporter of denim apparel to the U.S., as well as the fastest growing. It’s the first time we’ve surpassed China. Our share of the European market has also doubled in the last five years.
Carved in Blue: What factors have been integral to the industry’s growth?
Murtaza: The major factor has been the ongoing shift in global sourcing, catalyzed of course by the unpredictable Covid-19 pandemic. As awful as it has been from a social and healthcare perspective, it has precipitated major changes in global supply chains. This has been a big boon for the industry here as brands are looking for manufactures that are both cheaper and have less controversial practices and supply chains than players like China. This is partly due to a concerted effort to improve working conditions and empower labor. In fact, Artistic Milliners is one of a handful of Fair Trade Certified denim manufacturers globally. Our industry also works closely with brands to help empower women workers in advancement of Goal 5 of the U.N. Sustainable Development Goals, to which we are signatories, through initiatives such as Gap Inc’s P.A.C.E. program and the BSR HERproject.
Pakistan also has a major advantage in terms of raw materials. Compared with other textile and apparel categories, denim has benefited here because of the availability of medium-staple cotton, which is optimal for denim production. Brands are also discovering the benefit of Pakistan as a holistic sourcing destination, with manufacturers able to provide everything from farm to finished products, simplifying supply chains, and adding more transparency at every step. Our own Milliner Cotton Initiative is testament to how private sector is stepping up to empower farmers through technology.
These reasons and an appetite for cutting-edge technology adoption have boosted our industry’s confidence. We’re more assertive in our outreach than ever; we connect with buyers and are more aggressive in terms of trade shows. We’re showing up, and the world is paying greater attention to the benefits of Pakistan as a sophisticated denim destination.
Carved in Blue: What, if any, hurdles or obstacles are there to expanding your production?
Omer: The pandemic has, of course, created many unexpected hurdles, the most inescapable of which has been inflation. Everything from equipment imports that we rely on to keep us competitive, to the burgeoning cost of raw materials, particularly cotton.
Demand for denim is explosive, so we’ve mostly had to bite the bullet on this, since we can’t always pass on the increased cost onwards to our client partners. Massive demand is a good problem to have, but is also this double-edge sword for us. The pandemic has obviously accelerated the shift from physical retail to e-commerce, and with it has come this unprecedented appetite for quickly available goods. The overall disruption of the global supply chain has stretched our ability to deliver and expand: It takes longer to get the equipment we need to continue expanding capacity.
Carved in Blue: What should brands know about sourcing from Pakistan? And what are the top retailer misconceptions about your country?
Omer: Brands need to know that we are constantly pushing the boundaries, particularly when it comes to responsible innovation. The use of waterless laser technology, pigments that minimize harmful byproducts, repurposed materials and green fibers are becoming the norm rather than the exception. They also need to get over the perception that it is significantly more difficult to do business than other sourcing destinations. We’re moved up 28 places to 108 in the World Bank’s Ease of Doing Business Index in the space of just one year. I think the messaging must catch up to the sizable strides we’ve made in the last five years to help us accelerate a shift in perception.
Carved in Blue: From your perspective, what is the outlook for your business in the coming decade?
Murtaza: I want to imbue Artistic Milliners with the same resilience and hunger for innovation the world associates with companies like Tesla. In essence, that means thinking like a tech company: innovate relentlessly from both a production and organizational standpoint, so we can anticipate and unlock solutions to tomorrow’s challenges.
In our world, that means building on our already established nearshoring capacity to a level that makes us the first and last call for brands in the U.S. and Europe. It also means moving out of our comfort zone, by pivoting into wovens, adding a new dimension to our innovation matrix. Our new venture, called Artmill, focuses on a new array of premium wovens.
It means using machine learning to anticipate supply chain squeezes in raw materials and stockpiling as needed. It means using business intelligence to trend-cast demand and allocate production resources optimally. It means a continuing belief in digitalization as the lifeblood of our company, and the answer to issues related to excess production and wastage, as well as adoption towards agile operation and production models. That’s why we are fast adopting real-time monitoring software, 3D modeling, digital product libraries as well as blockchain systems to track material flow into our operations.
And perhaps, most significantly, I want our business to be on the vanguard of making our industry more responsible, accountable and equitable towards the planet and its people by continuing to invest in circular technology that contributes to our goal of net-zero. Its why we’re putting even more investment into driving Pakistan’s clean energy future, and why we are pioneering the blockchain traceability for raw materials via Retraced.
Carved in Blue: What types of investments are you making to grow your denim business? What is next for your company?
Omer: Our investment map ties in precisely with our 10-year plan mentioned above: Enhancing capacity in an intelligent way, which allows us to scale up production optimally while limiting our environmental and resource impact.
In this regard, we’re launching Circular Park, a purpose-built fabric recovery facility, powered by clean energy, capable of recovering up to half a million tonnes of textile waste every month. It will also enable us to precision control post-industrial fibers thanks to the Laroche equipped plant.
In tandem of course, we’re full speed ahead on Artmill, our strategic expansion into the piece-dye space. We’re looking to leverage our operational expertise to ride the boom in demand for multi-dimensional, multipurpose wear, whether it’s in the casual, comfort, active or workwear space. Our goal with Artmill is to build the most technologically advanced processing mill in the world with uncompromising innovation at the heart of it. In its first phase, Artmill is setup to produce 2 million meters of fabric per month.