SCM Garments Eyes Growth with Capacity Expansion and New Market Opportunities

By MK Prabhakar

SCM Garments is a name that needs little introduction to anyone associated with the Indian textile and apparel industry. Part of the renowned SCM Group and established in 1989, the company has grown into one of India’s leading garment manufacturers, catering to several prominent apparel brands in the US and the UK. At the recently concluded Bharat Tex 2026, the company’s vibrant and thoughtfully designed booth drew significant attention, attracting a steady stream of visitors throughout the exhibition.

Mr. Vikram Vinayagam, Executive Director

During the event, The Textile Magazine caught up with M. Arul Saravanan, Chief Marketing Officer, who shared insights into the company’s recent performance, expansion plans, experience at Bharat Tex 2026 and its growth roadmap for the coming years.

Navigating a Challenging Year

Reflecting on the company’s performance during FY 2025-26, Arul Saravanan acknowledged that it had been a demanding year for the textile industry as a whole.

“The last financial year was tough sailing, not only for us but for the textile industry in general. Our exports to the US were impacted due to tariff-related uncertainties. However, there were also positive developments in the form of the Free Trade Agreements (FTAs) with the UK, EU and New Zealand. The US market is also showing signs of recovery,” he said.

According to him, SCM Garments was able to weather the challenging business environment owing to the long-standing trust and strong relationships it enjoys with its customers.

“Thanks to the rapport we share with our customers, we could navigate the difficult period successfully. I would say FY 2025-26 was neither exceptionally good nor bad. We were able to match the business levels of the previous financial year.”

The company is now looking to leverage the newly signed FTAs to strengthen its presence in international markets by engaging with brands it has not previously worked with.

Investing for the Future

Known for its continuous investments in manufacturing infrastructure, SCM Garments has once again reinforced its commitment to capacity expansion.

Sharing details of the latest investment, Arul Saravanan said the company has established a new woven garment manufacturing facility at Musiri, near Tiruchirappalli in Tamil Nadu.

“We have invested in a new woven factory in Musiri, which will primarily cater to French retailers. It is a major investment with around 1,000 machines. With the new FTAs opening up fresh opportunities, we are also evaluating other locations across South India to further expand our manufacturing capacity. You will hear more about these plans soon,” he added.

The investment is expected to strengthen the company’s capabilities in the woven garment segment while supporting its long-term growth strategy in Europe.

Positive Response at Bharat Tex 2026

SCM Garments witnessed encouraging visitor response at Bharat Tex 2026, with its booth remaining busy throughout the exhibition. The company views the event as an important platform for customer engagement and business development.

“There is definitely more excitement around Bharat Tex this year, especially after the signing of the new FTAs. We met a good number of prospective customers. We are aiming to increase our manufacturing capacity by at least 20%, and that means we need to onboard new brands. Bharat Tex provides the ideal platform to connect with a diverse range of customers,” he explained.

Although the company did not introduce any new product launches at the exhibition, it used the opportunity to present a broader portfolio. “This is the first time we have showcased our woven and knit-woven product range at Bharat Tex,” he said.

Arul Saravanan also noted the growing stature of the exhibition over the years. “This is our third participation, and the significance of Bharat Tex has been increasing with every edition. During the previous edition, our Director had the privilege of meeting Hon’ble Prime Minister Shri Narendra Modi. Participating in Bharat Tex has certainly enhanced our visibility, and we have received a good number of enquiries that we are now following up,” he elaborated.

Expanding Global Footprint

Looking ahead, SCM Garments remains optimistic about the opportunities emerging in global markets, particularly in Europe.

“Our immediate focus is to expand our footprint in the European market. We are also targeting a 10% increase in turnover during FY 2026-27. With the investments we have made and the opportunities created by the FTAs, we are confident of achieving this goal,” he concluded.