Khadi sales zoom 28%, KVIC eyes Rs 5,000 crore in FY20

NEW DELHI: Khadi doesn’t seem to have been hit by any demand slowdown, with sales rising 28% to Rs 3,215 crore in 2018-19, making it one of the most rapid rise in recent years.

“There has been a very good response across segments be it fabric, readymade garments and even solar vastra. During the last five years, we have seen a quantum jump every year,” said Khadi and Village Industries Commission (KVIC) chairman V K Saxena. While KVIC has been complaining of production growth not keeping pace with demand, it reported a 17% jump in production to Rs 1,900 crore in 2018-19, compared to 7% a year ago.

KVIC’s revenues comes from sale of khadi as well as village industry products such as food products and cosmetics, which are many times bigger than garments. The steady growth in khadi sales has helped KVIC bridge the gap with some of the leading garment majors, which are seeing a slower pace of growth.

In 2017-18, Aditya Birla Fashion and Retail, which boasts of leading garment brands in its portfolio, reported sales of Rs 7,181 crore, while Raymond’s had consolidated revenue of over Rs 6,000 crore, but both companies saw a growth of under 10%. Fabindia, which is seen to be a rival to Khadi, had sales of over Rs 1,000 crore but the growth was almost flat.

Buoyed by the spurt in demand, Saxena has set a sales target of over Rs 5,000 crore for the current financial year, which is seen to be highly ambitious, given that it will require a growth of 55%, which is unprecedented at least since 2004-05.