Once the pandemic has been dealt with, textile companies in India can start reworking the formula of production and marketing by thinking out of the box and implementing new strategies, states Gurudas Aras, Director, Textile Engineering Group, A.T.E. Enterprises Private Ltd.
The present situation of the pandemic is unprecedented and therefore no one has been prepared for it as well. This is typically a ‘Black Swan’ kind of a moment wherein it has come suddenly without any prior notice and which will have a major impact on our lives, economies and businesses the world over. Perhaps after World War II this has been the next biggest catastrophe that the world is facing at such a scale. We could have never ever imagined that most of the economies in the world will be totally in lockdown for more than a month. The pandemic will be the reboot button that will begin a total overhaul of the world. A year from now will be very different in terms of how we live, how we work and how we use technology.
There will be a total restructuring of economic and social order in businesses. So let all of us be ready for that and change our mindset. However, in spite of the pain we all are undergoing at present, the current situation will also throw some opportunities for India and Indian manufacturers. The question is: Are we ready to grab them and if yes then have we prepared a plan or blueprint for the same? I am giving below some ideas for the post-pandemic situation, wherein we need to take some major steps to survive and also take advantage of emerging opportunities in the changed global scenario.
- It will be a bigger challenge to get the workforce back to work after the lockdown. Textile companies’ managements have to incentivize the workforce to return and provide all possible facilities like stay and food, and of course better hygiene.
- Preserving cash should be the topmost priority for companies in this difficult situation where borrowing also will be difficult. Cash management will be a real challenge since there will be the likelihood of increased credit periods while selling goods in view of contracted demand.
- Mills need to have a fresh look at their present product mix. Most of them have majority of them in the commodity category where the margins are lower. There is a need to revisit the existing product basket and enter into more speciality or niche products which can bring better margins.
- Indian textile industry is still majorly cotton-based, which is one of the reasons we are represented only in selected product categories in the exports trade. As crude prices will remain under pressure, all petroleum-based products like synthetics will also be available at lower prices. It is high time that India shifts towards more synthetics and blends so that we can participate in many more categories in global trade like winter wear, outerwear, functional and performance wear.
- There are huge opportunities in certain synthetic-based fabrics where India is still importing them in large quantities from China, Taiwan, Korea and Thailand such as sportswear and active wear, baggage and luggage fabrics. Indian companies must look at these segments where the domestic consumption is huge but today dominated by imports. Bigger companies with the ability to invest must explore these product segments to replace imports.
- Post the pandemic there will be a readjustment in the world order as well as business relationships between countries. A lot of countries like the US, Japan and countries from the EU will look at alternate suppliers to China in order to reduce their dependence on China. India needs to prepare a clear action plan to grab those opportunities and for that, both government and the industry associations should draw a blueprint of immediate actions.
- Indian exporters are operating mainly in low-value products; thereby India is virtually absent in the high-value product segment. It is high time that Indian manufacturers improve their manufacturing facilities to make them more cost-efficient and quality-oriented so that they can enter the high-value segment. Also, specialised coating and lamination for the fabrics can add value to the fabrics by imparting special fabric surface properties like fire-retardant, anti-microbial, easy-care, etc. It is China that is dominating in all these categories.
- It is imperative that technology will play a very crucial role in the future business. In order to adopt this change, Indian textile companies need to make their factories more digital and also use technology in manufacturing processes for energy and material saving as well as for optimising the costs in order to remain competitive.
- Our main problem is higher costs due to which we lose to other competing nations. The industry must revisit the costing and work hard towards optimising the costs, e.g., using common infrastructure and resources like testing laboratories, ETPs, etc. Countries like China can only be beaten if we achieve higher quality and offer a competitive price. This would need a total change in the mindset of our industry. Although it is difficult, certainly it is not impossible if all the stakeholders such as the industry value chain constituents and government work together as one team and have a single-minded focus to achieve that.
- India so far has been successful in the home textile segment but has failed in increasing exports of garments due to fragmented capacities and higher costs. We can certainly replicate the Bangladesh model in India by creating big capacities of garment making in low-cost regions like the North East States, Bihar, Orissa and Assam. With this, we can certainly grab the opportunities coming up due to the buying shift by brands to countries other than China.
- Due to the virus spread, in future healthcare-related products like PPEs, including face masks, surgical gowns, caps, shoe covers and many other disposable products will have huge demand on a sustainable basis both in the domestic and export markets. Hence, diversification in this line of business will ensure a growing market. This would need entry into the nonwovens area with spun bond, melt blown and spun melt technologies. Also, consumption of disposable wipes (spun lace technology) will increase with more hygiene consciousness. Indian companies must look at nonwovens area for future growth.
A.T.E. and Sellers Textile Engineers to bring Carpet Finishing Technology to India
Expanding its portfolio of carpet machinery, A.T.E. has now partnered with Sellers Textile Engineers, England, for the marketing and sales of carpet back coating and shearing machines in India. With more than 100 years of experience, Sellers Textiles Engineers is a world leader in the design and manufacture of finishing machinery for the carpet industry. The company’s expertise includes lines for tufted and woven carpets, carpet tile and artificial grass. Virtually every major carpet manufacturer throughout the globe utilises its machines in one form or another – as such, Sellers Textile Engineers has hundreds of leading references around the world.
“The company is committed to maintain and strengthen its reputation for manufacturing excellence in the carpet finishing market through utilising core skills and unique design and manufacturing prowess,” a press release states.
A.T.E. is a leader in textile engineering with over 80 years of experience in providing end-to-end solutions. It is uniquely positioned to support and supply all the equipment needed for carpet manufacturing, right from BCF yarn production lines from Truetzschler, carpet yarn heat setting lines from Power Heat Set, digital printing from Zimmer, carpet confection lines from Matthys Group and robotic tufting from EFAB.