One has to always look into new product categories and marketplaces

Vatsal Exports LLP is one of the country’s top exporters of textiles. The company offers cotton yarn, knitted fabrics & apparels together with contemporary facilities, making it a one-stop destination for all your textile needs. In this conversation, Vatsal Gaudani, Founder, Vatsal Exports LLP, shares the company’s future plan with Divya Shetty.

What was the company’s performance in the year 2023?

The outbreak of COVID has acted as a massive restraint on the textile manufacturing market as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by governments globally. While some companies pivoted and others were forced to close, Vatsal Exports emerged during the time of the pandemic. The emergence of the company & its growth has been contributed by several factors from keeping the competitive price range to offering a wide range of products with outstanding customer service. With the wide range of order quantities under the direction of Vatsal, Vatsal Exports managed to excel in every field of the textile industry. Spanning from fiscal year 2021-22 to fiscal year 2023-24, we have consistently surpassed our financial objectives, ensuring the successful attainment of all predetermined targets. It has grown at an unprecedented rate in 2023 under the guidance of Vatsal Gaudani; in just over two years, the company’s earnings have increased by three times from its first year.

Amid the global uncertainty, how can we boast our exports?

In the face of global uncertainty, bolstering textile exports necessitates a strategic and adaptive approach. These are the factors that have fuelled the remarkable growth of the textile sector in global trade:

Market analysis: First, in order to spot new prospects and changing demand trends, a thorough market analysis needs to be done. In order to reduce the obstacles associated with dependence on particular regions, emphasis should be made on diversifying export destinations.
Proactive engagement: Furthermore, active participation in diplomatic and commercial associations can help to remove obstacles to enter in target markets and negotiate advantageous trade agreements with other countries. Increasing the robustness of the supply chain and implementing sustainable practices can help draw in niche markets and environmentally conscious customers.
Capitalising on digital platforms: Lastly, using digital channels to their full potential can increase market penetration and optimise export procedures. This comprehensive approach will help one to improvise product innovation, market diversification, building strategic alliances, and sustainable business practices, strengthening our position.

What are the challenges before the Indian T&A manufacturers as they aim to expand their exports globally?

In the dynamic landscape of India’s economy, the textile industry stands as a cornerstone, contributing significantly to the nation’s growth and employment. However, like any complex weave, this industry faces its own set of challenges.

Fluctuating raw material costs: Rapid price changes impact production costs, affecting profit margins and overall sustainability.
Compliance with regulations: Stricter environmental regulations and compliance standards place increased pressure on manufacturers to adopt sustainable practices.
Technological gap: Even in 2023, many enterprises in the textile industry struggle to adopt advanced machinery and automation due to financial constraints, affecting production efficiency and product quality.
Global competition: The influx of imported textiles and clothing products, coupled with fierce competition from other manufacturing hubs, puts pressure on Indian textile companies to innovate and offer unique value propositions.
Market trends and fashion cycles: Staying attuned to rapidly changing fashion trends and consumer preferences is a balancing act for textile businesses. Anticipating and responding to these shifts requires agility and predictive insights.

“I believe, to surmount these challenges, Indian textile and apparel manufacturers must invest in research and development, adopt sustainable and innovative practices, and forge strategic collaborations with international partners” says Vatsal. Additionally, a proactive engagement with government bodies to address trade barriers and promote favourable policies can contribute to overcoming the challenges and enhancing the global footprint of Indian textile exports.

Any policy suggestion the government can take to encourage the industry?
For any country, increasing the exports will always be one of the most progressive initiations.

• Encouraging the government to enact specific export incentives especially in the form of tax cuts and financial support for quality certifications will greatly increase the country’s competitiveness on the world stage.
• A highly skilled workforce can be ensured by funding research and development projects in addition to skill development programmes for Indian firms.
• A stable policy environment, accelerated customs procedures, easier access to financing, and incentives for sustainable practices all work together to create an enabling environment that supports growth and strengthens the textile export industry’s position internationally.

However, the policies enacted by the government over the past few years for the promotion of the textile industry in India and improving the livelihood of the people associated with it have been commendable leading to the increase in the export activities, such as project SURE, Scheme for integrated textile park, Samarth & Amended technology upgradation fund scheme.

What are your suggestions in achieving the $ 100 billion exports target?

As a founder with a plan for significant expansion, reaching the $ 100 billion export goal calls for an all-encompassing growth approach. Starting with in order to keep up with the growing demand, we need to make bold investments to increase the production capacity. In addition, one has to always look into new product categories and marketplaces, as well as analysing customer preferences and new trends.

Forming strategic alliances and joint ventures with international distributors and retailers expedites market penetration that helps us to dig deeper not only in national as well as International Markets.

Delivering high-value textile products that differentiate us in the international market is another of our main priorities. Strategically managing resources and exploring financing options will ensure sustainable growth without compromising financial stability
In conclusion, a comprehensive strategy including growth, diversification, innovation, strategic alliances, successful marketing, government cooperation, and financial restraint is needed to meet the $ 100 billion export goal.