R&D helps companies stay ahead of market trends by developing new products

Kennigton Industries is a textile manufacturer with an impressive track record.The company started off its ambitious journey as an importer of yarns and diversified into manufacturing. Kennigton has strategically expanded its product portfolio, for example viscose yarn, polyester yarn, modal yarn, excel yarn, tencel yarn, slub yarn and its blends. Extending their offerings further, Kennigton ventured into fabrics to widen its customer reach and market share. Rajeev Tulshyan, Chairman, Kennigton Industries, shares his view on the current state of the Indian textile industry and how is his company contributing in this growth with Divya Shetty.

Please give us an overview of the current state of India’s textile and textile engineering industry

India is one of the largest producers of textiles and garments globally, with a diverse product range, including cotton, silk, wool, and synthetic fibres. The country is a leader in cotton production and has a strong handloom and handicraft sector.

India’s textile and textile engineering industry is one of the oldest and most significant sectors of the economy, contributing substantially to employment, exports, and GDP.

India is the world’s sixth-largest exporter of textiles and apparel, with the domestic apparel and textile industry contributing about 2.3 per cent to the country’s GDP, 13 per cent to industrial production, and 12 per cent to exports.

Textile engineering includes machinery manufacturing, automation, and innovations in textile technology. India is growing in textile machinery production, with a focus on advanced technologies like automation and digitalisation.

What are the challenges faced by the Indian Textile industry?

The Indian textile industry faces stiff competition from countries like Bangladesh, Vietnam, and China, which often offer lower production costs.

The influx of cheap fabric imports from China is severely impacting our ability to compete in the domestic market.

Despite our best efforts to produce high-quality fabrics at competitive prices, we are struggling to match the prices of Chinese imports. This is due to various factors, including- highly undervalued of Chinese imports under wrong HSN code.

As a result, Indian consumers are opting for cheaper Chinese fabrics, leading to a decline in demand for domestic products. Nearly, 50 per cent spinning mills has been closed and this has resulted in reduced sales and revenue fall for Indian textile value chain from fabric manufacture process house, yarn manufacture and fibre manufacture, job losses and potential factory closures threats to the long-term sustainability of the Indian textile industry.

Limited access to training programs tailored to the evolving needs of the industry. Many smaller players struggle to invest in new technologies due to financial constraints.

The rise of fast fashion demands quick turnaround times, putting pressure on manufacturers to be agile. Increasing demand for personalised products requires flexibility and adaptability in production processes.

Addressing these challenges is crucial for the Indian textile industry to maintain its competitive edge and capitalise on growth opportunities. Initiatives focusing on technology adoption, skill development, sustainability, and improved infrastructure can significantly enhance the industry’s resilience and performance.

What is the importance of R&D in the development of T&A industry?

Research and Development (R&D) plays a crucial role in the development of the textiles and apparel (T&A) industry. We can research into innovation in materials such as moisture- wicking, antimicrobial, and breathable fabrics, we can also research for alternative sustainable options such as organic cotton, recycled fibres, and biodegradable textiles.

We can also research in the area of new technologies that drives innovation in manufacturing processes and machinery, improving efficiency, reducing costs, and enhancing product quality. Development of textiles with embedded technology (e.g., sensors and conductive fibres) opens up new markets in wearable technology and health monitoring.

R&D helps companies stay ahead of market trends by developing new products that meet changing consumer demands. Unique, innovative products can differentiate brands in a crowded market, enhancing their competitive edge.

Which are the government policies & initiatives that are helping to boost the industry?

The Indian government has introduced several schemes, such as the Technology Upgradation Fund Scheme (TUFS) and the Production-Linked Incentive (PLI) scheme, to boost investment and innovation in the textile sector. Supports the modernisation and technological upgrading of the textile industry. Provides financial assistance for new machinery and equipment, facilitating the adoption of advanced technologies.

Initiatives like the Merchandise Exports from India Scheme (MEIS) and the Rebate of State and Central Taxes and Levies (RoSCTL) incentivise textile exports. Efforts to enhance market access through trade agreements and participation in international trade fairs.

Policies encouraging the use of sustainable practices, such as eco-friendly dyes and water- efficient processes. Support for obtaining sustainability certifications to enhance marketability.

These policies and initiatives collectively aim to enhance the competitiveness of the Indian textile industry, encourage investment, promote sustainability, and support skill development. By fostering an environment conducive to growth, the government is helping to position India as a global leader in textiles and apparel.

What sustainable initiatives is your company taking in its manufacturing process?

Kennigton Industries has been actively implementing several sustainable initiatives in its manufacturing process to minimise environmental impact and promote sustainability. Prioritising the use of organic, recycled, and sustainable materials to reduce the carbon footprint and reliance on non-renewable resources. Implementing water recycling systems to minimise water usage in our manufacturing processes. We are also upgrading our machinery and equipment to more energy-efficient models and optimising production processes to lower energy consumption.

Kennigton Industries’ commitment to reflects a comprehensive approach to reducing environmental impact and promoting responsible manufacturing.

How do you view the future of the Indian Textile industry?

The Indian textile industry is poised for a transformative future characterised by growth, innovation, and sustainability. By embracing technological advancements, focusing on eco- friendly practices, and leveraging government support, the industry can enhance its global competitiveness. However, addressing challenges such as supply chain resilience and cost competitiveness will be crucial. With the right strategies and investments, the Indian textile sector can emerge as a leader in the global market, contributing significantly to the economy and job creation.