Mill Update: Pakistan Producers on the State of Denim Part 1
Due to their position in the supply chain, denim mills have a finger on the pulse of the category’s demand, trajectory and developments. In this series, Carved in Blue is catching up with mills around the globe to get their insights on sales performance, impactful innovations and projections for this year.
Here, Pakistan-based mills AGI Denim, Artistic Denim Mills and Diamond Denim provide their denim update.
AGI DENIM
Muzammil Usmani, general manager research & product development
Carved in Blue: How did your mill close 2023? What were the highs and lows of last year? How has 2024 been so far for your company?
Muzammil: The year 2023 marked a significant milestone for AGI as we celebrated our 30th anniversary. To commemorate this occasion, we launched Tomorrowlab, a collection designed to showcase our sustainable vision for the denim industry. Collaborating with renowned denim think tank Jonathan Cheung, we utilized responsible fibers, nature-based dye innovations and innovative recycling solutions.
From a business perspective, 2023 showed promising performance, with our customers rebounding after the challenges posed by the Covid-19 pandemic.
As we enter 2024, we are strategically planning our mill operations, customer meetings and participation in exhibitions. Stay tuned for our exciting new collection at the upcoming Kingpins Show Amsterdam.
Carved in Blue: What are the new opportunities of the current period in the denim industry, and where do you see TENCEL™ fitting these?
Muzammil: Chemical recycling of fashion waste is gaining traction, and solutions like ECOVERO™ with REFIBRA™ technology are needed to address textile waste challenges. While mechanical recycling has limitations, such as using cotton-enriched waste materials and lower strength in recycled fibers, Lenzing can provide advancements with value-added fibers. There’s a noticeable market gap for such solutions, and we anticipate remarkable innovations in this direction.
Carved in Blue: What’s the most interesting or exciting recent development you have seen in the industry from other companies or institutes? And what are you most excited about internally?
Muzammil: Nature-based chemistry is a particularly exciting recent development, highlighted prominently during last year’s ITMA as a leading example of responsible innovation from major chemical suppliers. At AGI, we’re engaged in collaborations with leading natural ink and dye producers, fostering exciting developments.
Additionally, initiatives like the EU Green Deal, aiming for climate neutrality by 2050, spur developments in product and process transparency, such as product LCAs (life cycle assessments).
The pursuit of responsible resource utilization, spanning water, energy and improved chemistry, is indispensable for our journey forward. This commitment stands as the most thrilling aspect of AGI. As market leaders and trendsetters, we are continuously engaged in innovative thinking, driven by our unwavering dedication to sustainability. This forward-looking approach is made possible by the visionary leadership at the helm of AGI.Top of Form
Carved in Blue: Could you share three predictions for the denim industry in 2024?
Muzammil: Soft authenticity is becoming increasingly sought-after by consumers, reflecting a desire for the nostalgic appeal of classic denim aesthetics coupled with the luxury of premium fibers such as TENCEL™ and modal and innovative yarn-making techniques.
There is a growing market demand for sustainable shade solutions, with a previous inclination towards lighter shades to reduce chemical usage and enhance resource efficiency. However, recent trend forecasts indicate a shift towards darker shades while maintaining the authentic denim appearance. This necessitates the development of super dark dips and alternative deep shades using nature-based chemicals, which is indeed feasible.
Furthermore, there is a rising demand for responsible fibers incorporating chemical recycling solutions, as discussed earlier. Additionally, sustainability and technological advancements are expected to progress hand-in-hand, driving innovation and meeting evolving consumer preferences.
ARTISTIC DENIM MILLS (ADM)
Zahra Ahmed, head of marketing
Carved in Blue: How did your mill close 2023? What were the highs and lows of last year? How has 2024 been so far for your company?
Zahra: One of the biggest lessons of 2023 was the importance of staying flexible and adaptive. In the post-Covid era, we have seen so many factors of change, and by adopting a more tactile approach, we are better prepared as different challenges emerge. Our focus remains on providing a seamless service to our partners and being creative in all aspects of the business while staying true to product quality.
Carved in Blue: What are the new opportunities of the current period in the denim industry, and where do you see TENCEL™ fitting these?
Zahra: TENCEL™ is a key part of our strategy as we move into the future. Regardless of trend, customer comfort is one of the biggest considerations to take during product development. Being able to use technical fibers like this to optimize for experience while being able to achieve a traditional denim look is an invaluable asset.
Carved in Blue: What’s the most interesting or exciting recent development you have seen in the industry from other companies or institutes? And what are you most excited about internally?
Zahra: At ADM, we remain dedicated to pushing the bounds of recycled fiber technology. As one of the key innovators in this space, our goal for new development is to experiment with new and innovative fiber and continue to invest deeply into the technologies that drive sustainability in a meaningful and lasting way.
Carved in Blue: Could you share three predictions for the denim industry in 2024?
Zahra: The beauty about denim is that it is a wardrobe staple across innumerable markets. Each country and region has its own specific style, so there really is a trend and classic for everyone. Customers are more discerning than ever, which pushes us to question and innovate how we produce classic products, designed for the future and to be inclusive of environmental and social factors.
DIAMOND DENIM
Ali Abdullah, managing director
Carved in Blue: How did your mill close 2023? What were the highs and lows of last year? How has 2024 been so far for your company?
Ali: We closed as predicted: level year on year.
Highs have been growth with our existing customers and bringing on new customers at the same time. We are growing very successfully in our garments division.
Lows are the general market is slow both in denim and piece-dyed fabrics.
2024 has so far been exciting and busy for us with a lot of interest in wide and existing product range across denim, corduroy and flats. We’ve also just launched our moleskin collection, which is attracting a lot of interest. At the same time, we are proud to announce that we have launched our new apparel village, which is an extension of our existing sewing and washing plant, which in total can produce 850,000 garment pieces per month.
Carved in Blue: What are the new opportunities of the current period in the denim industry, and where do you see TENCEL™ fitting these?
Ali: With the current shipping challenges and extra lead times due to the Red Sea disruptions, we are seeing opportunities for full vertical packages from supplying fabrics to garments for speed and logistics.
Brands are continuing to look and invest in sustainable solutions, and TENCEL™ is an important part of this mix with the options to use across wider to super skinny shapes.
Carved in Blue: What’s the most interesting or exciting recent development you have seen in the industry from other companies or institutes? And what are you most excited about internally?
Ali: 3 Denim Weaving made by Delft University Netherlands. We have been collaborating with the students in creating new innovative ways of making denim and garments.
Internally, we are excited to be partnering with South Asian Sourcing Ltd for a Regen Cultivation project in 25 villages in Pakistan’s Bahawalnagar district. Our total area will expand over 5,000 acres to begin with.
Carved in Blue: Could you share three predictions for the denim industry in 2024?
Ali: To be able to work vertically right from cotton, fabrics and garments. This will support customers with speed to market, flexibility, price and shipping.
Wider shapes will still be important and using TENCEL™ within this mix.
We predict will see a growth in the denim market from end of the first semester in the U.S., followed then by Europe.