Vardhman Textiles – Benchmarking the Textile Industry

How does it feel to be a company that has been pioneering in every way, right from introducing new products to implementing the latest technologies to converting a crisis like the pandemic into an opportunity? No one would know this better than Ms. Suchita Oswal Jain, Vice-Chairman and Joint Managing Director of Vardhman Textiles, who, through an exclusive interview with Textile Magazine, provides insights into how a leader goes about managing just about everything.

Ms. Suchita Oswal Jain, Vice-Chairman and Joint Managing Director of Vardhman Textiles

It is no small achievement to be counted among the foremost women entrepreneurs in the country. And that is what Suchita Oswal Jain, the Vice Chairman and Joint Managing Director of Vardhman Textiles is, besides much more. This third-generation entrepreneur is credited for the turbo-charged growth of Vardhman Textiles over the last two decades. Passionate, astute and equipped with an exceptional business foresight, Suchita Jain, makes for the perfect role model for aspiring women entrepreneurs. But let’s begin from the beginning.

As a young girl, Suchita often used to accompany her father, Shri S P Oswal, a Padam Bhushan awardee, to the factories. The vibrant colours, textures, designs and patterns fascinated her; igniting her passion for textiles. Suchita had found her inner calling. A brilliant student, she completed her education from prestigious institutions including IIM (India), London Business School (UK) and INSEAD (Paris) besides taking hands-on-experience at Vardhman. While she may have been part of the founder’s family, she did not have everything handed over to her on a platter. Putting in the years of tireless efforts was mandatory, and Suchita did it with unparalleled enthusiasm.

Taking the Lead

Joining the company in her early 20s, Suchita worked in different departments, understanding as also streamlining the processes. Her hard work paid off and she rose through the ranks. It is said that fortune favours the brave. In Suchita’s case, the time when she joined the company coincided with the Indian economy opening up to Global market. Globalisation was the ‘in thing’ and Suchita wanted the company to make the most of the emerging opportunities. Her business instinct told her that it was the right moment to initiate the forward integration of the company. Under her inspiring leadership, the company established its first fabric-making plant in Baddi, Himachal Pradesh.

She gradually set up a centralised marketing team, an exclusive design and product development cell. Soon, the company was also ready with its dyeing and printing lines. There was no looking back from thereon. A period of rapid growth ensued under her stewardship.

As of now, Suchita is involved in formulating the Group Strategy, CSR initiatives, Governance Policies, Corporate Services, New Projects and Expansion Plans. So what’s the mantra for her success? “A dynamic approach, goal-oriented outlook and long term perception,” she explains.

Nurturing a Legacy

Speaking at length in an exclusive interview, Suchita touched upon various topics, including Vardhman Textile’s history, legacy, product portfolio, USPs, sustainability initiatives, strategies, HR policies and future plans, among others.

Suchita considers hers to be terrific journey with learning all along the way. She states, “The dream I had been envisioning has started taking shape and there are plenty of more goals to achieve.” To turn this dream into reality, Suchita has worked from the scratch. She has remained involved at each stage, from sourcing resources including machinery and manpower to establishing the supply chain. Despite being a newcomer, she targeted the most quality-conscious markets. With this decision, she was committed to sharpen her acumen while nurturing a business segment that today contributes to about 30% of the Group’s turnover.

Technology and Innovation

Among the noteworthy changes she introduced, setting up of a new technology cell that keeps Vardhman abreast of global standards requires a mention. She has always emphasised on innovation and thus established a New Product Development Cell besides centralising the marketing teams with the intent of improving their understanding of products as also augmenting the manufacturing processes from their inputs. Owing to this emphasis on technology and innovation, Vardhman is equipped with the most technologically advanced equipment sourced from global leaders and having the best-in-class operations.

Commenting on automation and technological advancement, Suchita states “The modern era is fast-paced and it is crucial for any industry to adapt to the changes at a similar pace. We constantly seek innovative technologies & product solutions, and are Industry 4.0-ready without a doubt.” As regards the company’s innovation policy, Suchita mentions that in the VUCA (volatility, uncertainty, complexity and ambiguity) world of textiles, either you quickly adapt or perish. “Maintaining a competitive edge, Vardhman Textiles continuously stays in contact with technology suppliers. We have the most advanced machinery and process innovations & expansions are a norm. We continuously monitor the trends and anticipate the change,” she states.

Ms. Suchita Oswal Jain with Shri S P Oswal

Widespread Presence

Vardhman Textiles was established in 1965 by Late Shri Ratan Chand Oswal and his son, Shri S P Oswal. The organisation has a spindle count of 1.2 million and is a leading manufacturer and exporter of cotton yarn. Vardhman Textiles is also a household name for hand knitting yarn. Having fabrics, garments, acrylic fibre and special steel also in its list of businesses, the Group is one of the oldest and the most trusted.

The textile conglomerate has a global presence and exports to over 75 countries. With a printing line of 24 million metres per annum, the fabric processing capacity of the textile conglomerate is 180 million metres per annum while the annual weaving capacity is 240 million metres. It has 18+ units spread across India. The company is strategically positioned to serve customer demands in an effective, cost-efficient and competitive way. Having several manufacturing units in Punjab, Himachal Pradesh and Madhya Pradesh offers proximity to raw material, accessibility to global markets and a well-networked supply chain besides a robust back-up mechanism to deal with force majeure situations.

“We are one of the oldest names in the Indian textile industry and have stood tall in the face of challenges as also the shifting market dynamics owing to a high degree of flexibility, agility and efficiency,” Suchita says. “India is one of the largest producers of cotton and has the world’s largest youth population. This means we have a dual advantage in terms of skilled workforce as well as ease of logistics. At the same time, this brings to us the responsibility to cater to this untapped pool of human resource and transform young and trainable brains into skilled professionals,” she adds.

The Right Approach

Another key feature of Vardhman Textiles is its balanced approach for future plans. Expansion planning is thoroughly calculated. “We have a composite unit at Budhni, Madhya Pradesh which makes us the largest vertically integrated textile manufacturer in the country but this decision was well thought through. We always knew when and how much. It is because of this, we didn’t have to put any ongoing projects on halt even during the pandemic. My vision is to make Vardhman Textiles a one-stop solution for the textile market but it has to be a gradual and stable growth.” she says confidently.

Sustainability and digitalisation are the newest initiatives that she is leading at present. She states that Innovation and adaptability are two of the must-have strengths in a business as dynamic as the textiles. Hence, as a pioneer, Vardhman not only accepts the change but plans and prepares for it even before it happens. “With the pandemic the scale of digitalisation has sky-rocketed. We were in the process of implementing digital practices before the pandemic hit the world but it was this thrust of social distancing that gave it more impetus,” she adds.

In terms of sustainability, Vardhman has a well-defined framework, as also committees evaluating and identifying further scope. The company has won awards for sustainability including the two conferred by Frost and Sullivan and TERI at Sustainability 4.0 – Challenger’s Award for Large Process Sector and Jury Special Mention Award for Water Saving Initiatives. Vardhman Fabrics has also been selected as a Model Factory to develop Energy Conservation Guidelines for the Textile Industry, as per a MoU signed between the Government of India and the Government of Japan.

Driving the initiatives further is the principle of 3Rs – reduce, reuse and recycle – besides responsible sourcing and processing. Vardhman has planted over 4 lac trees and worked for beautification of several areas in the vicinity of its manufacturing units. Solar lighting, access to potable water etc. are some of the means through which this proactively responsible organization is working on social as also environmental aspects of Sustainability.

Hands-On Leadership

Suchita’s leadership style is a blend of learnings from the founders of the business and the modern understanding acquired over all these years. She prefers to remain highly involved in every crucial decision. “I prefer to lead from the front and have both macro and micro level understanding of all the initiatives in place. Following an open door policy, I encourage people to actively participate in the decision-making process. Feeling of ownership can be developed by encouraging participation,” she replies.

Emphasising that People Development is the key to an organization’s growth, she adds, “We believe that talent can be attracted with recognition and opportunities alone. We are a legacy. We are a family. Many of our leaders have remained associated with us since the beginning of their careers. We owe it to the employee development initiatives and emphasis on holistic growth. We send our employees to renowned business schools across the globe and have also added virtual learning to the bouquet.”

Women empowerment is another subject she is passionate about. She acknowledges that there still are few women leaders who have made it to the top despite the thrust on Gender parity and sensitization endeavours. “I believe in providing equal opportunities and helping women develop their skills. We not only bring women to mainstream economy by providing employment but nurture their skills, and provide a lifestyle that promotes holistic growth. We counsel their parents, give them tours to the factories and hostels, and make them aware of safety system in place. At the same time, we address their trepidation. To ensure all the employees feel safe and comfortable, we have a drive in place, called ‘Respect for All’ which is a means to reinforce the value culture. Through it, we generate awareness among all that no matter what role, skill set or background a person comes from, every individual has to be treated respectfully” she elaborates.

Suchita also equally emphasises on Health and has launched a drive for that as well. The initiative called ‘Swasth Raho Mast Raho’ is aimed at generating awareness among all employees about issues concerning health. Free health and dental check-up camps, blood donation drives etc. are also held periodically. For women in particular, sessions from gynaecologists are arranged and a dedicated Project “Nandini” was launched under CSR, addressing the issue of lack of information about menstrual hygiene management. Under this project, other than organizing awareness sessions, installation of sanitary napkin vending machines and incinerators has also been done. The project was initiated in schools and slums of Ludhiana, Punjab and Baddi, Himachal Pradesh but also covers women working at the factories of Vardhman, 50% of whom come from rural background and have little information on the subject.

Social Responsibility

Thanking the community for the support it offers, she adds that ‘Social Development’ is one of the primary goals of the organization and that contributing to society is a privilege for her. Vardhman has worked on promoting education, healthcare, rural development, environment, art and culture, etc. The organization, under its project ‘Vardhman School Development Program’, has provided Government schools with well-equipped classroom blocks, labs and toilet complexes etc. Besides, contribution to hospitals in form of grants and advanced medical equipment is done to make quality healthcare assessable to all. During the onslaught of pandemic, the Group contributed over Rs 7.5 crore to government organisations for relief and during the second wave, also supplied oxygen cylinders from its Steel manufacturing unit.

Lessons from the Pandemic

The pandemic came as a bolt from the blue and impacted every industry. However, Suchita and her team were equal to the task. She quotes “Victory is winning despite the hurdles, not just when circumstances are favourable.” Going by the principle, Vardhman Textiles maintains its edge by staying agile, fleet-footed and quickly adapting to the change.

With the pandemic and consequent lockdowns, shutting down the units implied economic loss, but keeping the employees engaged and safe was a priority to the organization. Several initiatives were taken to safeguard the employees, starting from sanitization to healthcare support to making everyday essentials available at doorstep. Suchita emphasises that the primary learning from pandemic is that life is valuable and there’s nothing more important than the human resource. “Health, safety and growth are proportional to each other” she quotes.

Owing to the safety system in place, Vardhman re-initiated the operations early, in about a month’s time following the lockdown, after acquiring the required permissions from the Government. The employees residing in-house were the only ones allowed initially but re-igniting the engine of economy required a lot of work. “There was a revamping of our safety policies to ensure adherence of safety protocols without fail. The global market was also vulnerable and we had to reinforce our customers’ faith so that our relations remained intact. With restrictions on travel and logistics, there was a lot of uncertainty. But every problem comes with a promise of possible solution,” Suchita says.

Gradually, as everyone adapted to the New Normal, the changes in people’s lifestyle and preferences were to be attended too. The company had to relook and add to its product portfolio. During this time, Vardhman started the manufacture of PPE kits and masks for the local administration. The garment unit manufactured and provided protective gear to hospitals, police personnel and other corona warriors. This was initiated as a CSR initiative but since it was well-received and seeing the demand, the company continued operations to ensure there was no scarcity of safety material.

A peculiar feature about Vardhman’s masks was its breathability and anti-viral properties. The Group had launched a range of fabrics under the name Travel Shield which had anti-microbial properties for a certain number of washes. There was also an emphasis on product range that suited work from home set-up. In the context, Suchita states: “The best part about change is that it never is permanent. As the lockdowns ended and the world started adapting the new normal, the need for comfortable clothes to work from home were looked at and we ventured into it.”

Another major pandemic-driven challenge was showcasing the products to the customers for which the teams explored gadgets, software, tools, etc. in order to bridge the physical gap with digital resources. The textile pioneer acquired the ability to communicate effectively with its customers without requiring a visit. Other than virtual interactions, the company started utilizing a software through which they could give the customer, the look and feel of the fabric to a great extent by draping the fabrics on virtual models.

“Going further, we know the people will want to celebrate and travel and do what feels more normal. We are working on those collections. Our product diversification is aligned with the mood, world trends and need of the hour.

– Suchita Oswal Jain

Distinguished by Excellence, Defined by Values

Getting into details about the role of the company’s culture and values, Suchita elaborates: “We are distinguished by excellence and defined by values. Excellence stands for what you do and how well you do it and determines your identity. Values are what you stand for and they determine your worth. It is our constant pursuit of excellence that demands the best from us at all times. It inspires us to challenge our limits and deliver to exacting standards. While excellence is our sail, values are our compass. They shape our behaviour, our choices and decide our priorities. It is because of our deeply entrenched non-negotiable value system that each employee strongly believes that a business not only needs to make consistent profits but also must earn the trust and respect of all business associates, as well as enrich the community and safeguard the environment. When 30,000 of us perform in alignment at peak potential, the holistic experience of customers is much more than the sum of all the parts.”

“We believe that customer satisfaction and business relationships are key to growth of an organization, and we always meet our commitments. This trust we have acquired with hard work and by following ethical practices. Be it a vendor or customer, employee or any other stakeholder, we have our dealing in the most transparent and ethical way possible,” she continues.

Positive Outlook

Vardhman Textiles is reaching its 60th year milestone and the vision for the next five to ten years has been clearly mapped out. Listing out the key future plans, Suchita says: “The long-term vision remains to grow our business manifold and export to even more countries.”

“While working on technology, quality, innovation and product development, we are also committed to improve the speed of work and response time. In the direction of becoming a one-stop shop for the industry, we have increased our product line and variety. We are adding elements of growth to all business segments. However, as far as the overall strategy is concerned, we are very clear that we are going to remain in textile industry. We aim to be sustainable in every situation and equipped for the future demands”, Suchita concludes.