Kailash R Lalpuria: We embrace the principles of the circular economy

Indo Count is an end-to-end bedding provider that is solely focused on creating all-encompassing sleep experiences. The company has created its presence in more than 49 markets with the objective of continuing to add more every year. Kailash R Lalpuria, Executive Director & CEO, Indo Count Industries, in this conversation with Divya Shetty, highlights what sustainable and technological advancements his company is doing to stay ahead in this competitive market.

What according to you is the present state of the Indian textile industry?

The Indian textile industry is currently at a crossroads of tradition and modernisation. Here are some key points about its present state:

The Indian textile industry is leveraging shifts in global supply chains, especially in the wake of challenges faced by competing nations like China, Pakistan and Bangladesh. With increasing demand from international retailers for reliable and diversified sourcing, India is well-positioned to gain a substantial share in the global textile market.

The industry is advocating for comprehensive government measures, including fiscal incentives, infrastructure upgrades, and policy reforms, to drive competitiveness and revive growth. Schemes like PLI (Production Linked Incentive), Atmanirbhar Bharat and MITRA (Mega Integrated Textile Region and Apparel) parks are steps in the right direction, aiming to make India a global textile manufacturing powerhouse.

Sustainability has become a core priority. Initiatives such as annual Bharat Tex and other National/State level events underline the integration of eco-friendly practices with traditional Indian craftsmanship. Innovations in organic fabrics, sustainable dyeing techniques, and circular economy practices are gaining traction.

With increasing foreign direct investment (FDI) opportunities and global buyers exploring India as a viable sourcing destination, the sector is seeing renewed interest. India’s rich resource base, skilled workforce, and growing focus on Industry 4.0 technologies offer an attractive proposition to investors.

While the industry is grappling with high raw material costs, global competition, and supply chain inefficiencies, these challenges also present opportunities for transformation. Strategic collaborations, digital transformation, and skill development which can be key drivers for sustained growth.

The Indian textile industry is poised to redefine its global presence by balancing its heritage with forward-looking strategies in sustainability, innovation, and modernisation.

The Indian textile sector has set an ambitious target of achieving $350 billion in market size by 2030. In your opinion, what are the significant challenges or barriers that could hinder this progress?  

Achieving the ambitious target of $350 billion in market size by 2030 is indeed a challenging task for the Indian textile industry. Here are some significant barriers that could hinder this progress:

• Raw material shortages: The industry often faces shortages in the supply of raw materials like cotton and man-made fibres at competitive prices High raw material prices and import duties on cotton can make Indian textiles less competitive internationally.
• Environmental concerns: The textile industry is a significant contributor to environmental pollution. Addressing environmental issues and adopting sustainable practices can be costly and time-consuming.
• Infrastructure bottlenecks: Inadequate infrastructure, containers availability, transportation and logistics, can hamper the efficiency and competitiveness of the textile sector. Though there is significant improvement in these area in recent years, still timely containers availability and sea freight costs  remains a challenge for Industry.
• Global competition: Intense competition from countries with strong domestic support and lower production costs can make it difficult for Indian textiles to maintain market share.
• Market demand fluctuations: Changes in global demand, influenced by economic conditions and geopolitical factors, can impact export markets and overall industry performance.

What opportunities do you foresee for the Indian textile industry as we move into 2025?  

As we step into 2025, the Indian textile industry is well-positioned to seize numerous opportunities:

• Realigning global supply chains: The on-going political instability in Bangladesh and geopolitical disturbances in other countries have prompted global retailers to seek alternative sourcing destinations for assured and continued supplies. This shift offers India a pivotal chance to secure a larger share of the international textile market.
• Embracing technological advancements: Cutting-edge technologies like automation, artificial intelligence, and the Internet of Things are transforming the textile sector. These innovations are optimising production, enhancing efficiency, and driving cost-effectiveness across the value chain. India being one of the global dominant player in IT and ITES position it in advantageous position when compared with competition.
• Prioritising sustainability:The global appetite for sustainable and eco-friendly textiles is on the rise. India’s deep-rooted tradition of eco-conscious dyeing techniques, coupled with contemporary sustainable innovations, positions the country as a leader in this growing market.
• Unlocking investment potential:The Indian government is proactively inviting international investors to explore the thriving textile ecosystem. Platforms like Bharat Tex are spotlighting India’s robust capabilities and forward-thinking innovations, reinforcing its reputation as a global textile hub.

With the convergence of these opportunities, India is poised to solidify its standing as a global leader in the textile industry.

How crucial is sustainability in positioning India as a global leader in the textile industry? 

Sustainability is crucial for positioning India as a global leader in the textile industry. As global consumers become more environmentally conscious, there is a growing demand for sustainable and eco-friendly textiles. By adopting sustainable practices, India can not only meet this demand but also enhance its reputation as a responsible and innovative player in the global market.

Indo Count Industriesis making significant strides in integrating sustainable practices into its operations and supply chain. Here are some key initiatives:

Indo Count is committed to complying with environmental regulations and implementing management systems to monitor and improve environmental performance. This includes measures to reduce climate change impact, promote sustainable water management, and integrate sustainability into the supply chain.

Indo Count embraces the principles of the circular economy by focusing on reducing, reusing, recycling, and recovering.

The company has a sustainable procurement policy that emphasises ethical sourcing, compliance with environmental standards, and promoting climate-smart agriculture practices.

The company is dedicated to nurturing human capital, promoting equal opportunities, and ensuring health and safety standards for all employees. It also engages with local communities for social interventions and development projects.

Indo Count conducts business ethically and transparently, engaging with diverse stakeholder groups on sustainability issues and publicly disclosing its sustainability performance.

How important is technological modernisation in enhancing our global competitiveness, and what more can be done to accelerate the adoption of cutting-edge technologies in this sector?  

Technological modernisation is essential for enhancing global competitiveness in the textile industry. By improving efficiency, reducing costs, and meeting the ever-changing demands of consumers and markets, modernisation serves as a catalyst for industry growth.

• Automation and Robotics: The integration of automated systems and robotics streamlines production, reduces labour costs, and ensures precision and consistency in textile manufacturing processes.
• Artificial Intelligence (AI) and Machine Learning (ML): AI and ML enable smarter supply chain management, accurate market trend predictions, and improved product quality by leveraging data-driven insights.
• Sustainable technologies:Eco-friendly innovations like waterless dyeing methods, energy-efficient machinery, and biodegradable materials align with the growing global demand for sustainable textile solutions. To accelerate the adoption of advanced technologies within the textile sector, several strategic initiatives can be undertaken:
• Investment in Research and Development (R&D):Robust investments in R&D can lead to groundbreaking innovations and advanced technologies tailored for the textile industry.
• Fostering collaborations and partnerships: Collaborations with technology firms, research institutions, and global organisations can facilitate knowledge exchange and technology transfer, enhancing industry capabilities.
• Training and workforce development: Comprehensive training programs and skill enhancement initiatives for workers are vital to effectively integrating new technologies and boosting overall productivity.
• Showcasing industry innovations: Platforms such as Techtextil India and other trade exhibitions play a pivotal role in highlighting advancements and encouraging industry stakeholders to embrace technological innovation.

What measures should the government take to further strengthen the Indian textile and apparel (T&A) segment?

To further strengthen India’s textile and apparel (T&A) sector, the government can consider the following strategic measures:

Encouraging sustainable practices and adopting green manufacturing technologies will enable the industry to align with the increasing global demand for eco-friendly textiles.

The integration of digital tools and Industry 4.0 technologies can optimise supply chain operations, enhance productivity, and support data-driven decision-making for improved competitiveness.

Promoting R&D in areas such as smart textiles, technical textiles, and sustainable production methods can propel innovation and facilitate the adoption of cutting-edge technologies.

Upgrading infrastructure related to transportation, logistics, and warehousing will help reduce costs, improve supply chain efficiency, and bolster the industry’s global standing.

Government need to provide fiscal incentives to MSME sector to meet the growing demand for adopting sustainable business practices, technological advancement  and compliance with global ESG regulations such as European Union (EU).

Government need to expedite the FTAs with EU, UK and other countries which will provide level playing field to Indian Industry when compared with counties like Pakistan, Bangladesh and Vietnam which in turn will help to expand export volumes in global markets.

Which emerging areas within the textile industry hold the most potential for growth?  

Several emerging areas within the textile industry hold significant potential for growth:

Sustainable textiles: With increasing consumer awareness of environmental issues, there is a growing demand for sustainable textiles made from organic cotton, recycled polyester, and other eco-friendly materials. Certifications like Made in Green, ZDHC, WRAP, SEDEX, GOTS and OEKO-TEX ensure ethical and sustainable production.

Smart textiles: These textiles integrate electronics and sensors into fabrics, enabling functionalities like monitoring vital signs, regulating temperature, and providing haptic feedback. Applications in healthcare, sports, and fashion are expanding rapidly.

AI and data analytics: These technologies optimise supply chain management, predict market trends, and enhance product quality through data analytics.

Immersive fashion: This trend involves using virtual and augmented reality to create immersive fashion experiences, allowing consumers to engage directly in product conception.

Personalisation and customisation: Consumers are increasingly seeking personalised and customised products. Technologies like 3D printing and made-to-measure clothing allow for a more individualised approach to fashion.