Siddharth Lulla:  CAIF’s mission is to build a circular future

Launched in 2018, the ‘Circular Apparel Innovation Factory (CAIF)’ is a pioneering initiative by Intellecap with the objective of driving the clothing & textile sector to become circular. The initiative aims to increase the use of sustainable inputs and materials, maximize the usage of textile & clothing, bring in business model innovations, increase recycling and boost production through the use of renewable inputs. Siddharth Lulla, Partner, Circular Economy, speaks with Divya Shetty about CAIF’s mission, its ongoing efforts to drive sustainability in the textile industry, and how its initiatives aim to enhance the livelihoods of textile and waste sector workers.

What are your expansion plans over the next two to three years?

Over the past six years at Intellecap, I have led several programs under the Circular Economy practice, especially focusing on textiles and apparel. We operate through the Circular Apparel Innovation Factory (CAIF), an industry-led initiative aimed at building a circular and climate-resilient apparel sector in the Global South.

Our vision is to move from a linear “take-make-waste” model to a circular one that regenerates resources, reduces emissions, and promotes dignified livelihoods. Over the years, we have built strong multi-stakeholder programs across India, Africa, and Southeast Asia in areas like decarbonisation, waste-to-value, and sustainable materials.

Our expansion goal now is to scale these programs across geographies and integrate financing mechanisms with solution adoption. We are working towards developing scalable platforms that combine innovation, capital, and partnerships to accelerate the textile industry’s transition toward sustainability.

What is your presence in India and your key focus areas going forward?

India has been the starting point of our journey. We focus on building ecosystem-led initiatives driven by multi-stakeholder collaborations and high-impact agendas. In addition to India, we now operate in Bangladesh and are expanding into Africa.

In India, we work on:

• Decarbonisation: Supporting suppliers to adopt low-carbon technologies by showcasing and piloting viable solutions tailored to their needs.
• Waste-to-value: Creating models that involve waste workers, material recovery facilities, and recyclers to repurpose textile waste and reintroduce it into the supply chain.
• Green skilling and livelihoods: Training textile and waste sector workers for better income opportunities and promoting micro-entrepreneurship.
• Enterprise and innovation support: Supporting early-stage and commercially viable enterprises with pilots, boot camps, financing access, and innovation showcases.
• Access to finance: Developing blended finance tools to support SMEs in adopting green practices.

Our approach is contextual across geographies, and all initiatives are adapted to the specific needs and potential of each region we work in.

How is CAIF working with stakeholders across Asia and Africa to promote sustainability and reduce environmental impacts?

We are building a South-South collaboration platform tailored to regional contexts in India, Bangladesh, and Africa. Each geography presents unique challenges and opportunities, and we tailor our interventions accordingly.

In India, we focus on decarbonisation by working with brands and suppliers to adopt energy, water, and chemical management solutions. Outcomes of our efforts include 20 to 40 per cent reduction in energy consumption, 60 to 80 per cent reduction in effluent waste, adoption of 100 per cent bio-based materials and cost savings of upto 20 per cent. Our waste programs aim to eliminate 20 million kilograms of textile waste while creating 5,000 jobs.

In Bangladesh, we support women garment workers facing job displacement due to automation by upskilling them for roles in recycling, light manufacturing, and green jobs. Achievements include skill development of 1500 women of whom atleast 65 per cent have been placed in jobs. We also work on recycling blended textile waste and promoting indigenous recycling capacities. Here we are developing an indigenous ecosystem to recycle blended textile waste.

In Africa, we are piloting models such as circular cities, regenerative agriculture, and circular food systems. The goal is to transfer relevant learnings from India and Bangladesh to these new programs, adapted to local contexts.

Is the current India-Bangladesh trade uncertainty affecting your work?

Not directly. Our focus is on helping textile ecosystems in each geography transition toward sustainability. While trade disruptions may affect certain suppliers, our work remains relevant due to growing global sustainability mandates.

Both India and Bangladesh export to markets like the EU, where environmental regulations are tightening. Our programs are helping these regions meet those requirements. Therefore, although there may be economic impacts in the short term, the core of our work—enabling sustainable transformation—is unaffected.

Could you share some on-going or recently completed projects in India led by CAIF?

We’re leading several ambitious initiatives in India. Some key ones include:

• Project Accelerating Circular Economy (ACE): Supported by DOEN Foundation, this program identifies and pilots innovative solutions across energy, water, chemicals, and recycling with brands like H&M, Target, and Marks & Spencer.
• EU-Switch Asia initiative: A cluster-based initiative working with 250–400 SMEs across India to build capacity in carbon reduction, raise awareness about global sustainability policies, and provide access to green finance.
• Waste management programs: With support from IKEA Foundation and Alwaleed Philanthropies, we are building an end-to-end waste ecosystem—from collection and sorting to recycling and integration back into supply chains.
• Entrepreneur and innovation support: We are actively supporting early-stage and growth-stage solutions through enterprise boot camps, pilot testing, and access to finance. We are proud to have a large network of c. 500 commerically viable solutions. We recently facilitated a $30 million investment in Dalmia Polypro to scale its recycling infrastructure.

We are also in the process of launching our own circular economy-focused fund to support the widespread adoption of sustainable practices in the textile sector.

How do you view the current state of India’s apparel industry and its outlook for the next five years?

We are optimistic about the future of the Indian apparel industry. With government initiatives like PLI and rising global interest due to China+1 strategies, India is well-positioned for growth. There’s a strong domestic consumption base and increasing exports, supported by infrastructure developments such as garment-focused SEZs.

Importantly, the industry is now at a turning point where sustainability is no longer optional. Global buyers are demanding compliance with environmental standards. Indian suppliers who adopt green practices will be better placed to grow, improve competitiveness, and capture more value in the coming years. This is the time for the sector to transform itself meaningfully and sustainably.